Saas Marketer - compound interest in marketing

compound interest in marketing

The eighth wonder of the world

Feb 23

Yo team,

There is a topic in marketing that no one talks about.

It's a topic of such massive impact, that those aware of it, have a massive advantage over those that don't.

Those that don't, seem stressed and jump between strategies, always hopeful... but rarely generate lasting results.

Those that do, emit a zen like vibe. They stick to their strategy and generate eye-watering results over long periods of time.

Let's get into it...

If you were to fold an A4 piece of paper 42 times... how high would your piece of paper be?

1 metre?
10 metres?
100 metres?

No, it would reach all the way to the moon.

You see, the human brain is not build to understand exponential change... because there wasn't much exponential change around when we spent thousands of years evolving on the plains of Africa.

Exponential change occurs when a process feeds back on itself.

With the paper example above, each time the paper is folded, the height that is to be doubled, doubles.

But what does this have to do with SaaS Marketing I hear you cry?

Because these feedback loops occur in the marketing work that you do every day... if you're not aware of them you are either not looking or they are too small to notice.

And this is the reason why few marketers leverage the power of compounding: it starts so small.

The feedback loops start tiny and only after hundreds or thousands of loops do they start to have a visible impact. The tragedy being that most Flywheels are abandoned before they have a chance to flourish.

The most significant of these loops is the Content > Social > SEO Flywheel.

It goes like this:

1. You create awesome content and host it on your blog
2. You take parts of the awesome content and distribute them natively on social channels and link back to your blog
3. Over time, you start to rank, bringing in more organic traffic
4. More organic traffic, will mean more followers will follow and share your awesome content on social channels
5. More eyeballs on your content will lead to more backlinks, which will leads to greater rankings, more traffic and more social engagement
6. Repeat

The first time this Flywheel turns, it's impact will be tiny and invisible... but the 100th time will be different.

HubSpot have been turning this Flywheel for fifteen years.

Your job as a SaaS marketer is to identify, understand, build and protect these Flywheels.

I advise that you start with this Flywheel, and once that is turning you can move onto others...

One more analogy to finish...

The Chinese bamboo tree will spend 5 years developing, spreading its root system underground with no visible progress.

Then in its six year, it will grow 80-feet in six weeks.

This is what so many SaaS Marketer's get wrong.

They will start a new type of blog post series... but then give up after three turns of the Flywheel due to "poor results"

Now part of the blame must go to leadership, who push marketers for results without understanding the power of compounding.

So next time your CEO asks you when you're going to "switch up the strategy", simply share this quote:

“The first rule of compounding: Never interrupt it unnecessarily” - Charlie Munger

And of course...

Keep growing,
Tom - SaaS Marketer

P.S.

If you want to start compounding with a podcast OR want to compound faster with your existing podcast with a host built specifically for marketers... then you can claim 50% off bCast (podcast hosting for marketers, by marketers) for your first month with code: SAAS.

Features here: https://www.bcast.fm/features
Pricing here: https://www.bcast.fm/pricing

As an additional bonus, you will also get me as your personal podcast growth advisor... we will jump on a 15 minute call when you sign up to identify your podcast growth Flywheel ;)

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Saas Marketer - compound interest in marketing

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