Small growth hacks that work big for SaaS with Karsten Madsen @Morningscore

saas.unbound is a podcast for and about founders who are working on scaling inspiring products that people love, brought to you by https://saas.group/, a serial acquirer of B2B SaaS companies.

In episode #9, Anna Nadeina talks with Karsten Madsen from Morningscore, a gamified SEO tool that simplifies optimizing your website.

Karsten Madsen has an intriguing journey that began in high school. His first foray into business ended in failure, but it didn’t deter him. Instead, he pivoted to building websites, leveraging his technical skills. This led to the founding of Morningscore, driven by a passion for SEO that transformed into a desire to create a product that could help others achieve similar successes.

Morningscore emerged from Karsten’s fascination with SEO. As he successfully ranked for important terms, he realized the potential of SEO tools. This personal connection to SEO motivated him to develop a product that simplifies the optimization process for others, ensuring they too could experience the thrill of success.

Transitioning from Agency to SaaS

The transition from running an agency to a SaaS model was significant for Karsten. He noted that while running an agency felt straightforward, entering the SaaS market required a deeper understanding of product development and customer needs. The challenges were amplified by a saturated market, demanding a more strategic approach to product development and user acquisition.

Karsten emphasized the difficulty of establishing a successful SaaS product. Unlike agency work, where immediate results can be measured through client satisfaction and project completion, SaaS requires ongoing refinement and customer engagement. This transition wasn’t easy, but it was essential for Karsten to pursue his dream of building a product.

The Gamification of SEO Tools

One of the standout features of Morningscore is its gamification aspect. Initially, the idea wasn’t a deliberate strategy; rather, it evolved organically as the team built the product. Customers began to recognize the fun, game-like elements, prompting Karsten and his team to fully embrace this approach.

Gamification has proven to be a powerful tool in engaging users. Morningscore’s latest version exemplifies this commitment to fun and engagement, allowing users to enjoy the process of optimizing their websites while also achieving tangible results.

The Importance of Human Interaction in SaaS

In a world increasingly dominated by AI and automation, Karsten remains committed to maintaining a human touch in customer interactions. He believes that real human interaction fosters a sense of community and trust among users, which is vital for a brand like Morningscore.

Karsten’s approach includes employing great people who can engage meaningfully with customers. This strategy not only enhances customer satisfaction but also positions Morningscore as a brand that genuinely cares about user success.

Funding Decisions: Bootstrapping vs. Investment

When it came to funding, Karsten faced a pivotal choice between bootstrapping and seeking external investments. Understanding the financial landscape of running a SaaS business, he opted for a balanced approach, securing funding without relying exclusively on venture capital.

This decision allowed Morningscore to scale effectively while maintaining a level of control and direction over its growth trajectory. Karsten’s experience reflects the importance of strategic financial decisions in navigating the challenges of the SaaS market.

Shifting from Product-Led to Sales-Led Growth

In an effort to accelerate growth, Morningscore experimented with shifting from a product-led to a sales-led approach. This transition, however, brought its own set of challenges, as Karsten discovered that not all sales strategies fit every product or market.

The attempt to integrate a sales motion led to a difficult period for the company, resulting in a reassessment of their strategies. Karsten learned the hard way that understanding customer needs and preferences is essential in defining the right growth model.

Aggressive Marketing Tactics for User Acquisition

Karsten’s aggressive marketing tactics played a crucial role in acquiring users during the early days of Morningscore. Leveraging his network and reaching out to potential users directly proved effective, showcasing the power of personal connections in driving growth.

Using LinkedIn and other platforms, Karsten engaged with his connections, inviting them to try the beta version of Morningscore. This hands-on approach not only built a user base but also fostered a community around the product.

SEO Strategies and the Importance of Content

SEO remains a cornerstone of Morningscore’s growth strategy. Karsten emphasizes the importance of focusing on “money keywords” that potential users are actively searching for. By optimizing product pages and generating valuable content, Morningscore enhances its visibility in search engines.

Karsten advocates for a dual-purpose approach to link building, where efforts not only enhance SEO but also drive user acquisition. His experience underscores the importance of strategic content creation in establishing a strong online presence.

Building a Unique Brand Identity

Morningscore’s brand identity is a reflection of Karsten’s personal style and values. The uniqueness of the brand, including its playful elements and transparency, resonates with users, setting it apart in a crowded market.

Karsten’s authenticity shines through in his interactions and the brand’s messaging. This commitment to being genuine fosters trust and loyalty among users, contributing to Morningscore’s growing reputation.

Karsten continuously evaluates the effectiveness of various marketing channels. While traditional methods like SEO remain fruitful, he also explores newer avenues like direct messaging on platforms such as LinkedIn.

Reflections on Wins and Losses

Reflecting on his journey, Karsten acknowledges both the wins and losses that have shaped Morningscore. Each experience has contributed to his growth as a founder and the evolution of the business.

The challenges faced have served as valuable lessons, reinforcing the importance of resilience and adaptability in the entrepreneurial journey. Karsten’s willingness to embrace these challenges is a testament to his commitment to continuous improvement.