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How to grow a subscription business | Yuriy Timen (Grammarly, Canva, Airtable)

How to grow a subscription business | Yuriy Timen (Grammarly, Canva, Airtable)

41 segments available

Yuriy Timen was Global Head of Marketing and Growth at Grammarly, and is now a full-time growth advisor, having worked with more than a dozen companies, including Canva, Airtable, Whimsical, Otter.ai, Oyster, Flo Health, and Clay. In today’s episode, Yuriy discusses the ever-changing world of growth, emerging growth tactics, and how to find your growth engine. You’ll learn the most effective strategies for driving user acquisition, how to balance and diversify organic and paid channels, when it’s time to change plans, how to vet new growth channel opportunities, and much more. Find the full transcript here: https://www.lennysnewsletter.com/p/transform-your-subscription-growth — Where to find Yuriy Timen: • LinkedIn: https://www.linkedin.com/in/yuriytimen/ — Where to find Lenny: • Newsletter: https://www.lennysnewsletter.com • Twitter: https://twitter.com/lennysan • LinkedIn: https://www.linkedin.com/in/lennyrachitsky/ — Thank you to our wonderful sponsors for making this episode possible: • Flatfile: https://www.flatfile.com/lenny • Modern Treasury: https://www.moderntreasury.com/ • Eppo: https://www.geteppo.com/ — Referenced: • Casey Winters: https://www.linkedin.com/in/caseywinters/ • Elena Verna: https://www.linkedin.com/in/elenaverna/ • Lyka Pet Food: https://lyka.com.au/ • Ethan Smith’s LinkedIn: https://www.linkedin.com/in/ethanls/ • Graphite: https://www.graphitehq.com/ • Recast: https://getrecast.com/ • Measured: https://www.measured.com/ • INCRMNTAL: https://www.incrmntal.com/ • Essentialism: The Disciplined Pursuit of Less: https://www.amazon.com/Essentialism-Disciplined-Pursuit-Greg-McKeown/dp/0804137382/ • Man’s Search for Meaning: https://www.amazon.com/Mans-Search-Meaning-Viktor-Frankl/dp/0807014273/ • The Splendid and the Vile: A Saga of Churchill, Family, and Defiance During the Blitz: https://www.amazon.com/Splendid-Vile-Churchill-Family-Defiance/dp/0385348711/ • The All-In Podcast: https://www.allinpodcast.co/ • Hustle: https://www.netflix.com/title/80242342 • Mark Fiske at H.I.G.: https://higgrowth.com/team/mark-fiske/ — In this episode, we cover: [00:00] Yuriy’s background [09:46] Different paths to growth for subscription-based products [13:21] When to lean into virality [15:39] What are network effects? [16:32] SEO strategy and timeline: how long can it take to see results? [24:22] The shifting landscape of paid media [28:09] The return of media mix modeling [32:01] How can you tell if media spending equates to business results? [33:44] Don’t spread yourself too thin [36:01] How to tell if you’ve taken a strategy far enough [38:02] When to lean into a strategy that’s working vs. when to think about diversification [42:13] Is there a shift from growth to survival? [46:19] Two reasons to do paid media [56:45] Why you shouldn’t dismiss TikTok (and other channels you might be overlooking) [59:36] Lightning round! — Production and marketing by https://penname.co/. For inquires about sponsoring the podcast, email podcast@lennyrachitsky.com.

Segments Timeline

1
0:00 - 1:31
1:31 duration272 words

The Importance of Commitment in Growth Tactics

Yuriy Timen emphasizes the critical nature of fully committing to growth channels before dismissing them as ineffective. He shares insights from his experience with companies that prematurely abandon strategies like YouTube without giving them a fair chance. This segment highlights the common pitfalls in evaluating growth tactics and the importance of proper execution.

"the only thing that's worse than a channel or a tactic that you tried not working the only thing that's worse than that is when you didn't give it the appropriate shot right and and you prematurely or..."

2
1:31 - 2:09
0:38 duration108 words

Yuriy Timen's Growth Journey

Yuriy Timen shares his background as the former Global Head of Marketing and Growth at Grammarly, where he played a pivotal role in its success. He discusses his transition to advising various companies, including Canva and Airtable, and how his experiences have shaped his approach to growth strategies. This segment provides context for his expertise in subscription-based growth.

"with that i bring you yuri timmin hey ashley head of marketing at flat file how many b2b sas companies would you estimate need to import csv files from their customers at least 40 and how many of them..."

3
2:09 - 3:06
0:56 duration150 words

Tactical Insights for Subscription Growth

In this segment, Yuriy discusses the tactical aspects of growing subscription products, focusing on the balance between virality, SEO, and paid growth strategies. He highlights the importance of understanding the unique challenges and opportunities within each channel, providing actionable insights for startups looking to enhance their growth efforts.

"hear that i've consistently seen that improving onboarding is one of the highest leverage opportunities for both sign-up conversion and increasing long-term retention getting people to your aha moment..."

4
3:06 - 4:22
1:16 duration210 words

Advising Consumer Startups: A Personal Approach

Yuriy shares his approach to advising consumer startups, emphasizing the need for a personal touch and understanding the specific growth dynamics of each company. He discusses the number of companies he works with at a time and how he manages his capacity to ensure quality support. This segment sheds light on the advisory process and the importance of tailored strategies.

"they work with high-growth companies like gusto pipe classpass and marquetta modern treasury's robust apis allow engineering to build payment flows right into your product while finance can monitor an..."

5
4:22 - 5:56
1:34 duration268 words

Identifying Growth Archetypes in Startups

Yuriy outlines different archetypes of growth strategies for consumer startups, particularly in the subscription space. He discusses how companies can leverage strong unit economics and consumer lifetime values to identify their growth potential. This segment provides a framework for understanding how various startups can approach their growth strategies effectively.

"was only eight and a half years ago okay usually people round those up i'm impressed that you uh you get active i figured eight and a half is um long enough so i i mean yeah i i i'm not sure i wanna r..."

6
5:56 - 7:12
1:15 duration238 words

Leveraging Network Effects for Growth

In this segment, Yuriy explains the significance of network effects in driving growth for consumer subscription companies. He discusses how products can benefit from increased utility as more users join, highlighting the importance of referral and viral loops. This insight is crucial for startups looking to harness the power of community-driven growth.

"been unsuccessful you're failing in your group she was like are you trying to push me to having a third kid i was like no no i swear this is just just product testing clever so i've had casey winners ..."

7
7:12 - 8:38
1:25 duration257 words

SEO as a Growth Engine

Yuriy discusses the role of SEO in the growth strategies of subscription companies, particularly those with long-tail opportunities. He uses Canva as an example of a company that successfully capitalized on SEO to drive traffic and conversions. This segment emphasizes the importance of a well-structured SEO strategy in building a sustainable growth engine.

"because i've done it i've done it in a shorter period of time i i'm much newer to advising than both of those but no i have a ton of vibration respect both of them they're you know phenomenal what the..."

8
8:38 - 9:56
1:18 duration253 words

Paid Growth Strategies: When to Invest

Yuriy shares insights on when and how to invest in paid growth strategies for subscription products. He discusses the importance of understanding customer lifetime value and conversion rates to make informed decisions about paid acquisition. This segment provides practical advice for startups considering scaling their marketing efforts through paid channels.

"and i feel like i'm not you know showing up as best as i can with each individual company as a early plug or anti-plug depending on how you answer this are you looking for more companies to work with ..."

9
11:33 - 12:21
0:47 duration141 words

Leveraging Paid Growth Loops

Yuriy Timen discusses the potential of paid growth loops for subscription businesses, emphasizing the importance of conversion rates from free to paid users. He highlights the significance of network effects and how they can enhance user utility, particularly in social media and collaboration tools. Companies like Canva exemplify successful long-tail SEO strategies that capitalize on organic traffic.

"for work right and so maybe they're expensing it or just the perceived value so much higher that they're willing to bear that you know 120 130 a year uh subscription if i'm seeing things like that and..."

10
12:21 - 13:14
0:52 duration154 words

Understanding Network Effects

In this segment, Yuriy defines network effects and their critical role in product utility. He explains that the value of a product increases as more users join, using examples from successful platforms like Airbnb and Airtable. He also contrasts this with products that lack inherent network effects, such as Grammarly, and discusses the challenges of engineering such effects.

"uh if the utility increases the utility of the product increases the more users are using it another archetype i see are companies that can lead into seo very heavily especially if there is like a lon..."

11
13:14 - 14:55
1:41 duration288 words

The Power of Referral Loops

Yuriy elaborates on the effectiveness of referral loops and viral marketing strategies, especially for products with strong brand loyalty. He shares insights on how companies can still generate significant growth through referrals, even without inherent network effects, citing examples like a premium dog food subscription service.

"for that early on because that can become that can just you can build incredible mode with that kind of strategy that makes sense there's kind of like these three engines that you can tap into and i i..."

12
14:55 - 16:39
1:43 duration303 words

Defining Product Utility

Yuriy provides a clear definition of product utility in the context of network effects. He explains how the value derived from a product increases with the number of users, particularly in collaborative environments. This understanding is crucial for founders looking to leverage virality and referrals effectively.

"right you think about what dropbox has done around uh you know file sharing like that's an iconic example then it's really powerful i think that there is another case where referral buyer looks could ..."

13
16:39 - 18:13
1:34 duration281 words

When to Invest in SEO

In this segment, Yuriy discusses the strategic timing for investing in SEO, highlighting its longer return horizon compared to paid acquisition. He outlines key indicators for when a company should consider SEO, including having a unique angle or programmatic approach to content, and the importance of understanding the competitive landscape.

"people or there's amazing word of mouth already or there's collaboration probably a good sign that you could lean into virality yeah maybe referrals what about seo oh that's a good one it's a very it'..."

14
18:13 - 20:00
1:47 duration329 words

SEO Strategy Essentials

Yuriy shares essential pillars for a successful SEO strategy, emphasizing the need for a unique angle and programmatic approach. He discusses the importance of conducting audits to assess SEO opportunities and how to lower the cost of experimentation in SEO efforts.

"later so i think i said you know with seo it's like the first pillar i'm gonna say is do you have a unique angle when you take a look at the seo landscape today uh you look at editorial uh landscape w..."

15
20:00 - 22:15
2:14 duration375 words

Navigating SEO Expertise

Yuriy addresses the complexities of SEO and the value of seeking external expertise. He recommends conducting audits with specialized agencies or consultants to identify SEO opportunities and differentiate strategies, emphasizing the nuanced understanding required to succeed in this field.

"possible i think as a rule of thumb like if you can time boxing to three months like what can i do that at the end of three months i know like is this likely to work or not awesome couple follow-up qu..."

16
22:15 - 23:27
1:11 duration217 words

Innovative SEO Practices

In this segment, Yuriy highlights innovative SEO practices and mentions Ethan Smith from Graphite as a leading thinker in the field. He discusses the importance of staying updated with SEO developments and the potential for automation in SEO strategies.

"usually a very good use of time because they have templates so what they can turn but they can turn around you know for 5 to 10k would take you many many human hours to try to pull together yourself a..."

17
23:27 - 25:38
2:11 duration391 words

The Future of Paid Acquisition

Yuriy analyzes the current state of paid acquisition strategies, noting a contraction in paid media budgets and shifting definitions of efficient acquisition. He discusses the implications of these changes for consumer subscription companies and the need for adaptability in their paid media strategies.

"scientists on the ship right okay so we've talked about reality talked about seo paid i imagine that's pretty straightforward if your ltvs are high enough and you can pay back ads on those then that's..."

18
26:01 - 27:01
0:59 duration129 words

Media Mix Modeling's Comeback

Yuriy introduces the resurgence of media mix modeling as a strategy for budget allocation across various channels. He explains its relevance in today's advertising landscape, especially with the challenges posed by digital tracking limitations.

"for the last 30 minutes no i'm kidding let loose all right i'm not kid friendly but nobody's cursed yet this could be okay all right all right um uh but anyways yeah so so i think there is a short a s..."

19
27:01 - 28:09
1:08 duration191 words

Incrementality Testing for Effective Media Spend

In this segment, Yuriy discusses the importance of incrementality testing to determine the true effectiveness of paid media. He emphasizes that understanding causal relationships is crucial for optimizing advertising strategies and mentions companies that are innovating in this space.

"uh attribution stack on average for companies combined with just a level of acceptance that attribution will never be as good as it maybe once was we're gonna probably get you know hit like come out o..."

20
28:09 - 29:00
0:51 duration168 words

Choosing the Right Growth Channels

Yuriy advises founders on how to approach growth strategies, suggesting a focus on one channel at a time while allowing for rapid iterations. He warns against spreading resources too thin and emphasizes the importance of giving each strategy a fair chance to succeed.

"wow i haven't heard this perspective so interesting that the fact that it's gotten harder it's creating new opportunities for companies to do it better and more intelligently you said you mentioned a ..."

21
29:00 - 30:01
1:00 duration205 words

Evaluating Growth Tactics Effectively

Yuriy shares insights on how to evaluate the effectiveness of different growth tactics. He discusses the importance of setting clear metrics and knowing when to abandon a strategy that isn't yielding results, while also allowing for future revisits.

"etc it was leveraging data to some extent you would probably were doing it maybe on a quarterly basis and then you would only update it every quarter there was no way with media big slaughter there wa..."

22
30:01 - 31:03
1:01 duration173 words

The Art of Experimentation in Growth

In this segment, Yuriy emphasizes the need for experimentation in growth strategies. He discusses how to balance the opportunity cost of trying new tactics against the potential benefits, highlighting the importance of periodic re-evaluation of strategies.

"other forms of advertising i think it's still you're just yeah i think it's useful if you're spending a considerable amount was considerable essay north of 100 000 a month on paid media and if you hav..."

23
31:03 - 32:01
0:58 duration157 words

Guardrails for Growth Experimentation

Yuriy provides guidance on setting guardrails for growth experimentation. He explains how to establish objective criteria for success and the importance of knowing when to pivot or abandon a tactic that isn't performing as expected.

"incrementality testing which is typically really hard to do cleanly and also companies have always been often been wary about doing it because you have to like turn off a channel potentially in a key ..."

24
32:01 - 36:00
3:58 duration656 words

The Role of A/B Testing in Growth

Yuriy discusses the significance of A/B testing in modern growth strategies. He highlights how companies can leverage experimentation platforms to optimize their marketing efforts and improve overall performance metrics.

"right they're just like okay what do i actually do and so the more it's clear what to actually try and how to solve these problems the more people can actually make make change i had a couple question..."

25
36:00 - 37:10
1:10 duration193 words

Knowing When to Abandon Strategies

In this segment, Yuriy provides insights on how to determine when to abandon a marketing strategy. He emphasizes the importance of setting objective guardrails for testing and understanding the balance between persistence and reevaluation, especially in the context of sunk costs and opportunity costs.

"velocity this might be too hard to answer in a chat like this but you have any guidance for how to know when you've gone far enough i imagine there's a lot of nuance in detail there is there anything ..."

26
37:10 - 38:02
0:51 duration162 words

The 80/20 Rule in Growth Strategies

Yuriy explains the common observation that a single growth channel often accounts for 80% of a company's growth. He discusses the importance of focusing on this primary channel while being cautious about diversifying too early, especially for early-stage companies still establishing their user acquisition strategies.

"frankly it's like what's the incremental lift for us as a team to to try to experiment with the next phase of this channel or this tactic and what is the opportunity cost of that right what are the ot..."

27
38:02 - 39:38
1:36 duration240 words

Phases of Growth: Kickstart to Diversification

Yuriy outlines the three phases of growth for companies: the kickstart phase, discovering the main growth engine, and layering on additional engines for diversification. He stresses the need for early-stage companies to fully capitalize on their primary growth strategy before spreading their efforts too thin.

"one more quick question along these lines so you talked about these three broad ways companies grow oftentimes a couple of them work something i've seen and i'm curious if you agree usually one is lik..."

28
39:38 - 40:54
1:16 duration238 words

The Shift from Growth to Sustainability

In this segment, Yuriy discusses the recent shift in startup focus from aggressive growth to sustainability and economic viability. He explains how changing market conditions have led companies to prioritize extending their runway and minimizing burn rates, making long-term strategies like SEO more appealing.

"there you know with canberra it was the seo lego right so for them that was working really well which is more defensible than paid right that sort of like long tail programmatic seo angle but look you..."

29
40:54 - 42:08
1:13 duration240 words

The Importance of SEO in Current Markets

Yuriy elaborates on how SEO is becoming increasingly attractive for startups as they seek sustainable growth strategies. He contrasts this with the previous focus on paid acquisition, emphasizing the need for companies to build defensible growth initiatives that can withstand market fluctuations.

"put all of your energy like sure this one tactic is accounting for say 80 plus percent of your user acquisition but your user acquisition is still small right it's like don't don't get distracted with..."

30
42:08 - 43:44
1:36 duration278 words

Navigating Paid Media Strategies

Yuriy shares insights on the dual nature of paid media strategies. He discusses how paid media can serve as both a profitable acquisition channel and a rapid learning mechanism for messaging and positioning, while also cautioning against inefficient spending without clear metrics.

"to optimize that versus being distracted by oh let's do seo now i see that argument for sure so you mentioned at this point about how later stage growth strategies are starting to move earlier into gr..."

31
43:44 - 45:00
1:15 duration211 words

Evaluating Financial Health for Paid Strategies

In this segment, Yuriy emphasizes the importance of understanding a company's financial health before committing to paid media strategies. He discusses the need to assess conversion rates, retention, and overall runway to ensure that paid acquisition efforts are sustainable and effective.

"and then seo is for the grown-up companies right when we're that we can think about it and they were getting this reinforcement from everywhere from peers from vcs it's like it's growth growth growth ..."

32
46:41 - 48:12
1:30 duration255 words

Understanding Paid Media Efficiency

Yuriy Timen discusses the importance of understanding the efficiency of paid media as a growth strategy. He emphasizes the need for companies to assess their funnel performance, conversion rates, and retention curves to determine if they are ready to invest in paid media. Timen highlights that paid media should not be the first strategy for companies with low conversion rates and retention, suggesting that testing and learning should come first.

"oversimplification number one because it actually like drives drives returns at efficient unit economics whatever that may mean for your company your business your industry the other way to do it is b..."

33
48:12 - 49:58
1:46 duration329 words

Conversion Rate Benchmarks

In this segment, Yuriy shares insights on conversion rate benchmarks for subscription-based products. He explains that a healthy conversion rate from website visits to free account creation typically ranges from 20% to 35%, while anything below 5% for converting free users to paying customers is unsustainable for long-term growth. He stresses the importance of understanding these metrics for maintaining a viable subscription business.

"maybe card on a little bit of budget if you want to quickly test you know positioning and and things like that but it's just it's just too soon but if instead i encounter a company that's really healt..."

34
49:58 - 53:01
3:03 duration440 words

The Power of Onboarding

Yuriy emphasizes the critical role of onboarding in improving user activation rates. He notes that investing in onboarding can lead to significant increases in activation, especially for complex products. Timen discusses how effective onboarding can guide users through robust features, making them feel empowered rather than overwhelmed, which is essential for user retention and satisfaction.

"asymptote at like 25 30 percent what about like a conversion you know from a if you're a freemium from like a free user to a uh billion account or a paying account i think anything under five percent ..."

35
53:01 - 55:03
2:02 duration317 words

Investing in Customer Understanding

In this segment, Yuriy highlights the importance of understanding customers through user interviews and market research. He explains that investing time and resources into customer research pays off by providing clarity and focus for early-stage companies. Timen warns against over-reliance on paid media, suggesting that companies should prioritize understanding their customers to drive sustainable growth.

"almost all the time onboarding is a big opportunity awesome that's what i was expecting to hear to give folks some context what's kind of an order magnitude that you've seen improvement on onboarding ..."

36
55:03 - 59:36
4:33 duration760 words

Emerging Advertising Channels

Yuriy discusses the potential of underutilized advertising channels, particularly TikTok and podcasts. He notes that TikTok is becoming an effective channel for a broader demographic than commonly perceived, while also emphasizing the resurgence of offline advertising methods like direct mail and out-of-home campaigns. Timen shares insights on how these channels can yield high ROI and should not be overlooked in a comprehensive marketing strategy.

"off i mean i think i think over reliance on paid it comes to bite shoe in in in the rear end i think when i think about tracking and attribution i think it's a question of like the right level of inve..."

37
59:36 - 1:01:02
1:25 duration288 words

Books That Changed My Perspective

In this segment, Yuriy shares his top book recommendations that have significantly influenced his career and personal growth. He highlights 'Essentialism' by Greg McKeown for its focus on prioritization and 'Man's Search for Meaning' by Viktor Frankl for its profound insights on perseverance and control over one's reactions to circumstances.

"amazing all right are you ready for our very exciting lightning round i'm gonna ask you five questions i think and then just yeah let's go through a quick let's do it let's do it okay what are two or ..."

38
1:01:02 - 1:02:50
1:48 duration320 words

Historical Context in Modern Conflicts

Yuriy reflects on the parallels between Winston Churchill's leadership during WWII and the current situation in Ukraine amidst the Russian invasion. He discusses the book 'The Splendid and the Vile' by Erik Larson, which provides historical insights that help contextualize today's events, emphasizing the importance of understanding history to grasp current stakes.

"that that is a book i swear by um i read a lot outside of like work and business so i don't know if it's appropriate but i'll say that if the freckles a man search for meaning it's just a remarkable m..."

39
1:02:50 - 1:04:31
1:40 duration345 words

Finding Inspiration in Podcasts

Yuriy shares his current favorite podcast, 'The All-In Podcast,' which offers a unique perspective on various topics. He explains how it serves as a valuable source of information and entertainment, especially during challenging times when he has been focused on current events rather than entertainment.

"understand what's at stake not to end on two grandiose of a note we'll go less grandiose quickly but i will add one thing that stood out in that book that is also true in ukraine is how during the fir..."

40
1:04:31 - 1:07:26
2:54 duration524 words

Valuable Connections in the Industry

In this segment, Yuriy discusses the importance of connecting with thought leaders in the marketing and growth space. He mentions key figures like Ethan Smith and Mark Fiske, emphasizing the value of staying in touch with industry experts to gain insights and share knowledge.

"that i like that summary yeah so delightful maybe one more question uh who else in the industry do you most respect as a thought leader maybe someone people may not know or if anyone else comes to min..."

41
1:07:26 - 1:08:11
0:45 duration147 words

Engaging with the Community

Yuriy encourages listeners to reach out to him via LinkedIn and engage with Lenny's newsletter. He expresses his willingness to help founders by sharing his experiences and insights, highlighting the importance of community and mentorship in the growth journey.

"it's kind of that's about it amazing yuri you are awesome thank you so much for making the time to do this i learned a ton i can't wait to get this episode out there's just so much meat to this thing ..."