Hi there,
Thanks for reaching out!
Happy to give you some of my initial thoughts on your question about what's working for SaaS inbound marketing. It's a good question, and one that trips up a lot of founders. Everyone talks about content, SEO, and community as if they're magic bullets, but the reality is often a lot messier and slower than people expect.
The truth is, while those channels have their place, they often aren't the most scalable or predictable way to generate leads, especially when you need to show traction *now*. The real engine for most successful SaaS companies I've worked with is a well-oiled paid acquisition machine. The game isn't about 'inbound' vs 'outbound'; it's about creating a predictable system for growth. I'll walk you through how I see it, and how you can stop chasing content unicorns and start building a real, measurable pipeline.
TLDR;
- Blogs, SEO, and community are long-term plays. They take 6-12+ months to show real results and are unpredictable. For fast, scalable growth, you need paid ads.
- Stop defining your customer by demographics. You need to define them by their specific, urgent, and expensive 'nightmare'. This is the foundation of all effective targeting and messaging.
- Your core offer is probably your biggest problem. The "Request a Demo" button is a conversion killer. You must offer a frictionless free trial or freemium plan to let the product sell itself (Product Qualified Leads).
- The most important piece of advice is to understand your numbers. You must calculate your Customer Lifetime Value (LTV) to know how much you can afford to spend to acquire a customer (CAC). This frees you from chasing cheap, low-quality leads.
- This letter includes an interactive LTV calculator and a flowchart to help you define your ideal customer profile based on their problems, not just their job title.
We'll need to look at the 'Inbound' vs. 'Paid' Myth...
First things first, let's dismantle this idea that 'inbound' and 'paid' are two separate, opposing forces. It's a false dichotomy that leads to poor strategic decisions. When someone has a pressing problem with their current software, goes to Google, and types in "software for finding B2B contact info", and your ad is the first thing they see—is that inbound or outbound? I'd argue it's the purest form of inbound marketing that exists. You're capturing intent at its absolute peak.
The problem with relying solely on traditional inbound channels like blogging is the timescale and the lack of control. You can spend six months writing brilliant articles, optimising them for SEO, and get absolutely nowhere. Google might change its algorithm, a competitor with a huge domain authority might outrank you, or you might simply be writing about topics nobody is actually searching for with commercial intent. It's a bit of a gamble, especialy in the early days.
Paid acquisition, on the other hand, gives you immediate data and control. You can turn the tap on and off. You can test messaging, audiences, and offers in a matter of days, not months. You get a direct, measurable feedback loop: I spent £X and got Y trials. This lets you build a predictable model for growth. We had one B2B SaaS client generate 4,622 registrations at just $2.38 each using Meta ads by getting this feedback loop right. For another, we generated 3,543 users at only £0.96 per user with Google Ads. That kind of speed and predictability is almost impossible to achieve with SEO alone in the early stages.
The goal isn't to abandon content, but to reframe its purpose. Content becomes the fuel for your paid engine. It's what you use in your ads, on your landing pages, and in your lead nurturing sequences. But the *distribution* and *lead generation* is driven by paid channels. That's the mindset shift.
I'd say you need to define your customer by their nightmare, not their demographics...
This is probably the single biggest mistake I see SaaS companies make in their advertising. They come to me with an Ideal Customer Profile (ICP) that looks something like this: "We sell to VPs of Sales at tech companies with 50-250 employees."
That's utterly useless. It tells you nothing about their motivations, their fears, or their day-to-day reality. It leads to generic, boring ads that say things like "The #1 Sales Enablement Platform" which get completely ignored. You are not selling to a job title; you are selling a solution to a painful, expensive, and urgent problem. A nightmare.
Your Head of Sales client isn't just a job title. She's a leader who's terrified of missing her quarterly target because her reps are wasting half their day on manual data entry instead of selling. She's frustrated that her CRM is a black hole of useless information. She's worried about her best salesperson leaving for a competitor who has better tools. *That* is her nightmare. Your ICP isn't a person; it's a problem state.
Once you understand that nightmare, everything else falls into place. Your ad copy stops being about features and starts being about feelings. Your targeting gets sharper. Instead of just targeting "VP of Sales", you start thinking:
- What podcasts does she listen to on her commute? (Maybe 'SaaStr' or 'The Top'?)
- What newsletters does she actually read? (Maybe from Gong or Sales Hacker?)
- What software does she already use and pay for? (Salesforce, HubSpot, Outreach?)
- What influencers does she follow on LinkedIn? (People like Jason Lemkin or Becc Holland?)
This intelligence is the blueprint for your entire targeting strategy on platforms like LinkedIn and Meta. You stop guessing and start making data-informed decisions about where your real customers are spending their time. Do this work first, or you have no business spending a single pound on ads. It's the foundational step that most people skip.
Step 1: The Old Way
Demographic ICP:
"VP of Sales, 50-250 employees, Tech industry"
Result: Generic ads, low engagement, wasted spend.
Step 2: Find the Nightmare
Problem-State ICP:
"Terrified of missing quota due to reps wasting time on manual data entry in a messy CRM."
Result: Deep customer empathy, focused messaging.
Step 3: Map to Targeting
Targeting Signals:
Follows Jason Lemkin, uses Salesforce, member of 'SaaS Growth' groups, reads Sales Hacker newsletter.
Result: Hyper-relevant ads delivered to the right people.
You probably should calculate the math that unlocks growth...
The second biggest mistake is an obsession with getting the lowest possible Cost Per Lead (CPL). The real question isn't "How low can my CPL go?" but rather "How high a CPL can I afford to acquire a fantastic customer?" The answer is found in your Customer Lifetime Value (LTV).
Most SaaS founders I talk to either don't know their LTV or they've calculated it incorrectly. Without this number, you are flying blind. You have no idea if that £50 lead from LinkedIn is a bargain or a disaster. Let's break it down with a simple, realistic formula:
- Average Revenue Per Account (ARPA): What's the average amount you earn from a customer each month?
- Gross Margin %: What's your profit margin on that revenue after accounting for costs of goods sold (COGS) like hosting, support staff, etc.? For SaaS, this is often high, maybe 80-90%.
- Monthly Churn Rate %: What percentage of your customers cancel their subscription each month? This is the most critical metric.
The calculation is: LTV = (ARPA * Gross Margin %) / Monthly Churn Rate
Let's say your ARPA is £200, your Gross Margin is 85%, and your Monthly Churn is 5%.
LTV = (£200 * 0.85) / 0.05
LTV = £170 / 0.05 = £3,400
This means that, on average, each new customer is worth £3,400 in gross margin to your business over their lifetime. Now we can talk about your Customer Acquisition Cost (CAC). A healthy LTV:CAC ratio for a growing SaaS business is typically at least 3:1. This means you can afford to spend up to £1,133 (£3,400 / 3) to acquire a single new customer.
Suddenly, things look very different. If your sales process converts 1 in 10 qualified trials into a paying customer, you can afford to pay up to £113 per qualified trial. That £50 lead from LinkedIn now looks incredibly cheap. This is the maths that separates the companies that scale aggressively from those that timidly try to save pennies on ad spend and never get off the ground. You have to know your numbers.
Lifetime Value (LTV)
£3,400Affordable CAC (at 3:1 Ratio)
£1,133You'll need an offer that doesn't suck...
Now we get to the point where most SaaS ad campaigns fall apart: the offer. The "Request a Demo" or "Book a Call" button is, without a doubt, the most arrogant and ineffective Call to Action in B2B marketing. It presumes your prospect, a busy decision-maker, has nothing better to do than schedule a 30-minute meeting to be sold to by one of your junior sales reps. It's high-friction, low-value, and immediately signals that you're just another vendor.
For a SaaS business, your product is your best salesperson. You have an incredible advantage over a service business: you can let people experience the value for themselves before they pay. Your offer *must* be a frictionless free trial or a freemium plan. No credit card required. Let them sign up, get into the app, and have an "aha!" moment within the first five minutes. Let them solve a small part of their nightmare for free.
When the product itself proves its value, the sale becomes a formality. This creates what we call Product Qualified Leads (PQLs) instead of Marketing Qualified Leads (MQLs). A PQL is someone who has used your product and seen its value firsthand. They are infinitely more valuable and easier to convert than an MQL who just downloaded a whitepaper. I've seen so many SaaS companies with a great product fail because they hide it behind a demo wall. One of our most successful clients achieved 5,082 software trials from Meta ads, and did so with a simple, direct "Start Your Free Trial" offer. No hoops, no barriers.
If you're not a pure SaaS company and have some service component, you are not exempt from this principle. You must bottle your expertise into something that provides instant value. For us, it's a free 20-minute strategy session where we audit a potential client's ad account. We solve a small problem for free to earn the right to solve the whole thing. For you, it must be the product itself.
We'll need to look at how to actually find customers with paid ads...
Once you've defined your ICP's nightmare, calculated your LTV, and fixed your offer, you're ready to start advertising. The platform choice depends on where your audience is and their state of mind.
Google Ads: The Inbound Engine
This is where you capture active demand. People here are problem-aware and solution-aware. Your goal is to target keywords that show clear commercial intent. Forget broad terms like "sales software". You want long-tail, high-intent phrases like "hubspot alternative for small business" or "software to automate salesforce data entry". These people are holding their credit cards, looking for a solution. Your ad copy should speak directly to their pain and your landing page should get them into a free trial as quickly as possible. This is often the highest converting channel for B2B SaaS.
Meta (Facebook/Instagram) Ads: Engineering Discovery
People on Meta aren't actively looking for your software. You need to interrupt them. This is where your 'nightmare' ICP work becomes absolutly critical. Your ad creative (usually a video or a simple image with compelling copy) must stop them scrolling by articulating their pain better than they can themselves. Use the Before-After-Bridge framework:
- Before: "Your sales team just spent another Friday afternoon manually updating the CRM. Again."
- After: "Imagine your CRM updated automatically, in real-time, freeing up 10 hours per rep every week."
- Bridge: "Our platform is the bridge. It connects your tools and automates the busywork. Start a free trial and see for yourself."
You MUST run these as conversion campaigns optimised for your trial signup event. Do not, under any circumstances, run "Brand Awareness" or "Reach" campaigns. You are literally paying Facebook's algorithm to find the people in your audience who are *least* likely to ever click or buy, because their attention is cheap. It's a complete waste of money. You're telling the most powerful advertising machine on earth to find you non-customers. It's madness, but I see it all the time. For B2B, a well-structured Meta campaign can be incredibly effective; we once took a medical job matching SaaS from a £100 CPA down to just £7 by restructuring their campaigns and focusing purely on conversions.
ToFu: Top of Funnel (Awareness)
Goal: Make people aware they have a problem you can solve. Target broad but relevant audiences based on your ICP research.
- Lookalikes of Website Visitors
- Interests: Competitor Software (e.g., Salesforce)
- Interests: Industry Publications (e.g., SaaStr)
- Job Title Targeting (Broad)
MoFu: Middle of Funnel (Consideration)
Goal: Nurture interest from people who've engaged but not converted. Show them case studies, feature deep-dives, or testimonials.
- Retargeting: Website Visitors (30 days)
- Retargeting: Video Viewers (50%+)
- Retargeting: Social Page Engagers
BoFu: Bottom of Funnel (Conversion)
Goal: Push high-intent users over the line. Offer a direct call to action to start a trial.
- Retargeting: Visited Pricing Page (7 days)
- Retargeting: Started Checkout/Signup (3 days)
- Lookalikes of Existing Customers
LinkedIn Ads: The B2B Sniper Rifle
LinkedIn is powerful because you can target with incredible precision: job title, company size, industry, specific company names, group memberships. It's the best place to get your message in front of that exact VP of Sales at a 100-person tech company. However, it's also incredibly expensive. Clicks can easily be £5-£15+. This is why your LTV calculation is so important. You can't afford to advertise on LinkedIn unless you know a customer is worth several thousand pounds to you. We've seen success here, getting B2B decision maker leads for a client at around $22, but this was for a very high-ticket offer where that cost made perfect sense. It's a specialist tool for when you know exactly who you need to reach and can afford to pay the premium.
Finally, you'll put the other 'inbound' channels in their proper context...
So, where do blogs, newsletters, and community fit into this model? They are vital, but their role is often misunderstood. They are not primary lead generation channels; they are long-term assets that *support* your paid acquisition efforts.
- Blogs & SEO: This is your long-term moat. You should absolutely be creating content that answers your ICP's questions and targets relevant keywords. This content serves two purposes: 1) Over 6-18 months, it will start to generate organic traffic, which is fantastic. 2) In the short term, it provides valuable assets you can promote in your MoFu (Middle of Funnel) ad campaigns to nurture leads who aren't ready for a trial yet.
- Newsletters: A newsletter is for nurturing, not acquisition. You use it to build a relationship with the people who have signed up for your trial or downloaded a resource (which they found via a paid ad). It's how you stay top-of-mind and provide value, increasing the likelihood they will convert to a paying customer down the line.
- Community: A community is a retention and expansion tool, not a lead generation tool, especialy when you're starting out. You build a community for your *existing customers* to help them succeed, get feedback, and identify upsell opportunities. Trying to build a community from scratch to attract new leads is an incredibly difficult and slow process. It's a goal for year 3, not day 1.
I've detailed my main recommendations for you below:
To summarise, here is a practical, step-by-step plan I'd recommend to build a predictable growth engine for your SaaS.
| Step | Action | Why It's Important |
|---|---|---|
| 1. Define the Nightmare | Go beyond demographics. Interview customers and non-customers to identify the specific, urgent, and expensive problem your SaaS solves. Write it down in one sentence. |
This is the foundation for all your messaging and targeting. Without it, your ads will be generic and ineffective. |
| 2. Calculate LTV & CAC | Use the formula and interactive calculator in this letter to determine your Customer Lifetime Value and a target Customer Acquisition Cost (aim for a 3:1 LTV:CAC ratio). |
This tells you how much you can afford to spend on ads. It shifts your mindset from "cost-saving" to "growth investment". |
| 3. Fix Your Offer | If you have a "Request a Demo" button, replace it. Implement a completely frictionless free trial or freemium plan. Your primary CTA should be "Start Free Trial". |
This removes the biggest barrier to entry and lets the product sell itself, generating high-quality Product Qualified Leads (PQLs). |
| 4. Launch Google Search | Start with a small budget (£20-£50/day) on Google Ads. Target 5-10 high-intent, long-tail keywords that signal someone is actively looking for a solution like yours. |
This captures the 'lowest hanging fruit'—people who are already looking to buy. It provides quick wins and valuable conversion data. |
| 5. Launch Meta Conversions | Create a simple conversion campaign on Meta targeting audiences based on your 'nightmare' research. Use the Before-After-Bridge copy framework and drive traffic to your free trial page. |
This allows you to create new demand and scale beyond the limits of search. It's how you build a much larger pipeline over time. |
Executing this strategy correctly is, of course, more complex than it sounds. There's a lot of nuance in campaign structure, bidding strategies, creative testing, and audience management. It's a full-time job, and doing it wrong can be a very expensive learning experience.
This is where expert help can make a significant difference. We've spent years refining these processes for dozens of SaaS companies, learning the patterns and avoiding the common pitfalls.
If you'd like to discuss how these principles could be applied specifically to your business, I'd be happy to offer you a free, no-obligation 20-minute strategy session. We can have a look at your current situation and map out a more detailed plan for you.
Regards,
Team @ Lukas Holschuh