Should we invest in a community in an economic downturn?
Yuya Julien Takada
5 replies
The tech industry is said to be in a recession as bad as or worse than the one in 2008.
Public SaaS multiples are severely compressed in 2022. (Approx. 1/4 from historical high)
I strongly believe that it is important to invest in the user community in the current downturn because...
(i)Market changes, your customers don't.
Impossible to predict the future now. We don't even know what 2023 has to offer.
The only clear thing is there are existing customers in front of you.
Pay attention to the community of existing customers to effectively increase revenue.
(ii)Community touch is essential to scale customer success.
The scalability of customer success is a key growth driver in a downturn, and the community plays an important role to scale customer success and maximize revenue.
(iii)A community becomes a competitive advantage when the sun is up.
The market will recover from the current downturn someday. Community is not about how much money you spend. It's rather how much time spent and how much care you dedicated. It's the best investment you can bet on in a downturn.
Let me know your thoughts!
(details in the blog post below)
https://medium.com/@YuyaTakadaEn/d242ec711530
Replies
Dávid Sipos@david_sipos
Propertizer
Great article! Interesting thoughts! Congrats!
Share
I totally agree that building community can be your best asset, especially in times of uncertainty!
Interesting thoughts thank you! But I personally gave up on investing. My journey became in day trading, and that experience really hurt me, soon I decided to invest and hold for the long term. Now I can't count how many times I panic-sold the assets for a low price. However, I still want a bright future and yearly retirement so I trusted my funds to PMS Fund and it is the best time I ever had in investing even though it is a downtrend nowadays on the market, my portfolio still grows up.
ScreenBox
Always invest in networking!