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Atmrix

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YC

Y Combinator Cast

06/02/22

@ Y Combinator

As a founder, you must track whether free users convert to paid users and over what timeframe to ensure your business model is viable.

Video

YC

Turning Your Users Into Paying Customers

@ Y Combinator

Turning Your Users Into Paying Customers

06/02/22

Related Takeaways

GA

Gustaf Alstromer

09/12/18

@ Y Combinator

Understanding the retention rates of both paying and free users is crucial for identifying growth opportunities and addressing potential issues in user engagement.

GA

Gustaf Alströmer

12/30/22

@ Y Combinator

If you track your sales data, you'll have a clearer idea of how long it will take to acquire paying customers.

GA

Gustaf Alstromer

09/12/18

@ Y Combinator

For paid growth, ensure you have revenue before investing in ads, and understand your customer acquisition cost (CAC) versus the lifetime value (LTV) of your users to ensure profitability.

MM

Macy Mills

05/17/25

@ a16z speedrun

Track the number of paying customers to measure growth; increasing customer acquisition rates can demonstrate to investors how quickly you're scaling.

MS

Michael Seibel

09/06/18

@ Y Combinator

Many founders think they need to offer their product for free to gain users, but it's often better to charge a price to gauge real interest.

AC

Adora Cheung

02/24/15

@ Y Combinator

Be cautious with paid growth, as it can be risky; if you pay for users who don't generate enough revenue, you could run out of money.

GA

Gustaf Alströmer

12/30/22

@ Y Combinator

Founders often overlook the importance of tracking their sales conversion rates, which is crucial for improving their sales strategy.

BH

Brian Halligan

05/08/19

@ Y Combinator

If I were to start HubSpot again, I would implement a freemium model to attract users more naturally before converting them to paying customers.

AC

Adora Cheung

08/01/19

@ Y Combinator

While revenue is often the best primary metric, some startups may focus on active users, especially if building a large audience is a prerequisite for monetization.