The Dual Funnel Is a SaaS Growth Cheat Code
The Dual Funnel Is a SaaS Growth Cheat Code
The dual funnel is a powerful "SaaS Cheat Code" that involves simultaneously targeting two distinct market segments with two different sales funnels: a low-touch funnel for a wide, low-priced market and a high-touch funnel for a premium or enterprise market.
How the Dual Funnel Works:
The two funnels work in synergy to accelerate growth.
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The Low-Touch Funnel (Volume & Brand):
- Target: Small businesses, individual professionals, or prosumers.
- Price Point: Low (e.g., <$100/month).
- Mechanism: A self-service, automated sales process.
- Function: This funnel acts as a wide net, bringing in a high volume of users. This generates initial revenue and, more importantly, builds widespread brand awareness and word-of-mouth.
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The High-Touch Funnel (Revenue & Validation):
- Target: Mid-market or enterprise companies.
- Price Point: High (e.g., >$1,000/month).
- Mechanism: A sales-driven process involving demos and direct contact.
- Function: This funnel is the primary revenue driver. It benefits from the brand recognition and social proof generated by the low-touch funnel, which makes it easier to get the attention of larger customers.
The Growth Trajectory:
Typically, a company with a dual funnel will see the majority of its early revenue come from the low-touch funnel. Over time, as the brand strengthens and the sales process matures, the high-touch, high-ACV funnel will grow to represent a much larger percentage of the total revenue.
This strategy allows a company to capture the entire spectrum of the market, using the volume of the low end to fuel the high-value sales at the top end.
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