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KH

Kevin Hale

09/07/19

@ Y Combinator

Industry benchmarks for conversion rates vary: casual download games average about 2%, while freemium SaaS companies range from 1.5% to 5%, with an average around 3%.

Video

YC

Kevin Hale - How to Improve Conversion Rates

@ Y Combinator

Kevin Hale - How to Improve Conversion Rates

09/07/19

Related Takeaways

KH

Kevin Hale

09/07/19

@ Y Combinator

A high conversion rate example is TurboTax Online, which boasts a conversion rate of around 70%, indicating very high user intent.

AC

Adora Cheung

08/01/19

@ Y Combinator

The growth rates of successful startups can range from twenty to two hundred percent month over month, but they typically cluster around twenty to fifty percent month over month.

TB

Tom Blomfield

12/16/23

@ Y Combinator

For early-stage B2B SaaS companies, aiming for a net dollar retention of 125% to 150% is ideal, while mature companies should target around 110% to 120%.

AS

Alex Schultz

03/24/17

@ Y Combinator

The virality of a product can be assessed by its conversion rates at each step of the user journey, from invites to sign-ups.

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a16z Cast

03/26/25

@ a16z

There is a significant difference between apps that generate high traffic and those that generate revenue, with only 40% overlap between the two lists of top apps.

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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.

TB

Tom Blomfield

01/07/24

@ Y Combinator

For consumer startups, achieving at least 15% month-on-month growth in active users is ideal, with 10% being acceptable, while 5% is likely insufficient for long-term viability.

TB

Tom Blomfield

07/26/24

@ Y Combinator

Software businesses should target high margins, ideally around 80% to 90%, to ensure sustainability and profitability.

BH

Brian Halligan

05/08/19

@ Y Combinator

Freemium models work well for large markets, allowing companies to give away products as a strategy to capture a larger audience.