💡 How Canva Outplayed Adobe and Skyrocketed to $39B

A SaaS Masterclass                                                                                                                                                                                                                                                                                                                                                                                                                 November 23, 2023 | [Read Online]( [fb]( [tw]( [in]( [email](mailto:?subject=Post%20from%20Leveling%20Up&body=How%20Canva%20Outplayed%20Adobe%20and%20Skyrocketed%20to%20%2439B%3A%20A%20SaaS%20Masterclass%0A%0Ahttps%3A%2F%2Fnewsletter.levelingup.com%2Fp%2Fcanva-outplayed-adobe-skyrocketed-39b) Happy Thanksgiving, Ever wonder how a startup like Canva took on a giant like Adobe Photoshop and not just survived but thrived, reaching a staggering $39 billion valuation? It’s a classic David vs. Goliath, with some smart SaaS strategy in the mix. Here’s how their two founders, Melanie Perkins and Cliff Obrecht, hit a wall with growth and then smashed it with one brilliant insight. Image Source: Forbes The Struggle and the Breakthrough Imagine this: Perkins and Obrecht are battling to make Canva a hit. They saw how cumbersome and complex graphic design was with existing tools (yeah, looking at you, Photoshop). Their goal? To make design accessible to everyone, not just the pros. This wasn't just about creating another app – it was about democratizing design. It was a good product… but the growth? Not so stellar. Canva was growing slowly for nearly half a decade. Then, they hit upon a goldmine idea. They looked at giants like Adobe, charging hefty fees, and thought, “What if we go free?” That was their “aha” moment. It was bold, risky, and exactly what turned Canva from just another design tool into a $39 billion behemoth with 60 million monthly users, including 500,000 teams from companies like Intel and Zoom using it. They didn’t just tape together a cheap freemium offer – they went big on it, offering a slew of premium features at zero cost. The Lesson: It's About Getting Them Hooked Here’s the takeaway for you: Look at your software and ask, “What can I give away that’s genuinely valuable?” You can also take a page out of Neil Patel’s book with Ubersuggest. He offers a free version, and it’s not just a teaser – it's packed with value. The key? These companies found the sweet spot. They offered enough value to make the free version incredibly useful yet kept the allure of the premium for those wanting more. Freemium isn't just a pricing strategy; it's a growth engine. By offering real value for free, Canva didn’t just attract users – they built a loyal community. When users see the value, many willingly upgrade. That's how you convert free users into paying customers. Applying This to Your SaaS: A Strategic Blueprint So, how do you replicate this in your SaaS business? First, identify the core value of your product – what makes users stick around. Then, decide what portion of that value can be offered for free without cannibalizing your premium offering. Take Dropbox, for instance. They offered essential cloud storage for free, enticing users with simplicity and convenience, then upsold with more space and features. But of course, it’s not a one-size-fits-all. It's about understanding your audience, your product's unique value, and how you can leverage that in a freemium model. If you want help from a proven team, [book a free consultation with us.]( - We’ve worked with Nextiva and reduced their cost per click (CPC) by 41.37% while increasing leads - We also helping grow Intuit’s organic reach and visibility - And we’ve also helped companies like Uber and Amazon Let’s explore your product, your market, and how a freemium model or other growth strategies can skyrocket your business. And who knows, I might jump in on the call to throw in my two cents. Plus, you’ll walk away with a free, bespoke marketing plan tailored to your SaaS. [Click Here To Get Started For Free]( To your growth, Eric Siu Would you like more tactics like this? - [No ❌]( - [Yes ✅]( [yt]( Update your email preferences or unsubscribe [here]( © 2023 Leveling Up 228 Park Ave S, #29976, New York, New York 10003, United States [[beehiiv logo]Powered by beehiiv](