We’re Narrowing Our Focus

Ever since launching Cloud Campaign back in June, the end goal was to build a product for small to medium-sized agencies.

Although I initially casted a much broader net to validate the product and generate initial revenue streams, it was always in the back of my mind to eventually narrow the focus to a single target customer — agencies.

There are a few reasons why agencies are the ideal customer:

1. Most are tech-savvy
2. They’re used to paying for software
3. As their business grows, our revenue stream grows

While hustling for $5/mo deals might seem appealing since in theory they should be easier “sells”, the reality is that you can’t build a sustainable business on $5/mo.

If we take a look at Buffer’s revenue breakdown, 46% of their revenue is coming from their $10/mo ‘Pro’ plan.

Buffer’s MRR By Plan — Baremetrics

I know what you’re thinking… “you want to throw out 46% of your potential revenue?”

But the reality is, 54% of Buffer’s revenue can be attributed to only 11% of their customers.

In other words, 89% of their customers contribute to less than half of their overall monthly revenue.

Buffer’s Customers by Plan — Baremetrics

By focusing on that 11% comprised of mostly our target customers, we can provide a better, more personalized experience and still generate enough revenue to sustain a business.

You will begin to notice changes to Cloud Campaign reflecting this minor shift in focus, with new plans being introduced in early March targeting a higher price point.

If you manage an social media agency with 2–20 employees, join us on this journey to building a smarter, more powerful social media marketing platform.