Solved: Best PPC Strategy for Pre-Seed Insurance Software?

Hi there,

Thanks for reaching out and asking for some initial thoughts about your marketing budget and how to target potential investors with your insurance policy management software. I'm happy to give you some guidance. It's a really tricky problem to balance your budget, show traction, and impress investors pre-seed. I hope this is helpful for you.

We'll need to look at how to allocate your budget...

Firstly, let's talk budget allocation. Since you’re bootstrapped, every penny counts. I'd suggest starting with a smaller, more focused approach. Instead of spreading your budget thin across various channels and broad keywords, concentrate on the strategy that gives you the most bang for your buck.

Have you considered dedicating a significant portion of your budget, say 70-80%, to niche keywords directly related to insurance policy management? It's a smaller pool, sure, but these leads are far more likely to be genuinely interested in your solution. The rest, you can use for tracking/testing purposes.

With niche keywords, you can aim for laser-like precision in your ad targeting. This increases the chances of attracting high-quality leads who are actively seeking a solution like yours. Plus, it's easier to demonstrate a clear return on investment to potential investors when you can show that your marketing efforts are directly resulting in qualified leads.

I remember working with a software business in the medical job matching niche, where we lowered their CPA (Cost Per User Acquisition) from £100 to £7 by making the targeting really precise, I think you should consider something similar. This is something that really impresses investors, they want to see how you're being efficient.

I'd say you need to focus on the right metrics...

Now, about what impresses investors: they want to see traction, but not just any traction. They want to see *meaningful* traction. That means focusing on metrics that demonstrate the value and potential of your software, with limited funds. Don't get distracted by vanity metrics like website visits or social media followers. Instead, concentrate on metrics that directly correlate with revenue generation and customer acquisition.

Prioritise metrics like cost per lead (CPL), conversion rates (e.g., the percentage of leads who sign up for a trial or request a demo), and customer acquisition cost (CAC). These metrics paint a clear picture of how efficiently you're acquiring customers and generating revenue.

I remember one client in the environmental controls niche, we reduced their cost per lead by 84% using LinkedIn and Meta Ads. If you can achieve something like this, your investors will certainly be impressed.

Also keep in mind that it can take a while to get B2B sales over the line as the sales cycles can be much longer - there isn't usually an immediate ROI like in B2C sales. If you give your investors the impression that there will be an immediate ROI, you will probably end up disappointing them. Just be honest with your numbers and they'll be happy, even if they aren't where they should be.

You probably should consider search ads...

Think about what your ideal customers are searching for when they need a solution like yours. Are they actively typing specific keywords into search engines like Google? If so, search ads might be a good fit.

With search ads, you can target potential customers who are actively searching for solutions related to insurance policy management. By bidding on relevant keywords, you can ensure that your ads appear prominently in search results when people are looking for what you have to offer.

I remember a campaign where we got 3,543 users at £0.96 cost per user with Google Ads for a software client, so I'd really consider it, especially if you're in B2B and your audience is actively searching for your type of solution. With Google Ads, you can target specific keywords related to the problems your software solves, ensuring that your ads are shown to people who are most likely to be interested in your product.

You'll need to look at your website too...

Don't forget your website. This is where people will land, so you need to make a good impression.

It's gotta load quickly. People bounce quickly if they have to wait. Also it needs to be designed really well, people need to be able to navigate easily. I've had so many prospective clients come to me who want me to run their ads but their website just isn't up to scratch - it's always the first thing I tell them to focus on. If it's no good, you might not get any sales!

Oh and good copy is essential. Really persuasive copy will go a long way. Make sure you use a copywriter who has experience working with SaaS companies to write your copy. This will help to get people in the door.

I've detailed my main recommendations for you below:

I hope these initial thoughts have been helpful for you. Starting a business and advertising is really difficult, and it can be difficult to know where to start, so I hope this helps in your journey.

You might want to consider working with an expert who specialises in paid advertising to ensure you get the best results from your marketing efforts, especially as you are bootstrapped and money is tight. By bringing in specialist expertise, it may allow you to get better value for your money and focus on growing your business without the worry of wondering whether your advertising is going to convert.

We do offer a free consultation where we review your strategy and account together, where we can give you a taste of the expertise you'll see going into your project if you decide to work with us.

Regards,

Team @ Lukas Holschuh