A fan refers to users of your product or solution who hold decision-making or decision-influencing roles within their organizations. These individuals become advocates and champions of your brand, playing a crucial role in its success.

The Math Behind 1000 Fans — The average tech job tenure in the US is now approximately four years. With this in mind, out of 1,000 fans, around 250 are likely to change jobs within a year and transition into new companies. As decision influencers or decision-makers, they present valuable opportunities for sales teams. Assuming a conservative 40% success rate, closing 100 new accounts with an average contract value (ACV) of $100,000 results in $10 million in new Annual Recurring Revenue (ARR). With a projected 50% year-over-year growth, this translates to $30 million ARR and the achievement of unicorn status.

Contrasting 1000Fans with T2D3 — The 1000Fans approach differs significantly from the T2D3 model in terms of execution and strategy. While T2D3 focuses on revenue growth at all costs, including potential trade-offs in customer experience, the 1000Fans model emphasizes the development of a loyal fan base. By allocating resources to all departments and prioritizing exceptional customer experiences, companies can cultivate an enthusiastic community while achieving sustainable growth.

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This is significantly different from T2D3 from an execution point of view.

• The T2D3 formula aligns the company strategy with new customer acquisitions vs the 1000Fans formula aligns with prioritizing exceptional customer experiences (cultivating Fans).
• In T2D3, we expect the product-market fit and re-direct most capital spending toward sales and marketing. In the 1000Fans formula, we spend most of our capital on building Fans, which means an appropriate focus on all departments to create the best experiences for the customer.
• T2D3 is about revenue growth at all costs, including poor customer experience, vs. 1000Fans is about Fans at all costs, including revenue growth.
• Fans create more Fans, but ARR does not produce more ARR. A customer with a big ARR is often a drag on the future ARR of the company.

To implement the 1000Fans strategy successfully, it is crucial to prioritize the following areas:

• Building and Maintaining a Fan Database: Create a comprehensive database of fans, enabling personalized engagement and targeted communication.
• Tracking Fan Activities: Monitor fan engagement and interactions to gain insights into their preferences, pain points, and opportunities for improvement.
• Strong Community Building: Foster a sense of belonging and collaboration among fans through various channels such as forums, events, and social media platforms.
• Incorporating Revenue Operations Processes: Implement effective revenue operations processes to stay on top of fan triggers, enabling proactive engagement and maximizing growth opportunities.
• CSM Team: The Customer Success Management (CSM) team plays a pivotal role in ensuring the success and satisfaction of fans. Their expertise and support help build long-lasting relationships and drive advocacy.

By adopting the 1000Fans model, modern SaaS tech companies can establish a loyal fan base that fuels their growth trajectory. This approach prioritizes customer experience, community building, and engagement, ultimately leading to sustainable revenue growth and the potential to become a unicorn company. As revenue leaders seek a balanced approach between revenue goals and broader company objectives, the 1000 Fans model offers a promising path toward IPO success.