Early Product Localization Wins

Jason Lemkin shares a strategy for achieving international revenue growth through early product localization and strategic market expansion, particularly for SaaS companies.

Key Points:

• Target Revenue Split:

  • Aim for 30% of revenue from outside North America
  • Example: Hubspot now has majority of customers outside North America

• Market Entry Strategy:

  • Don't actively hunt international customers initially
  • Watch where customers naturally come from
  • When reaching 5% revenue in an area, invest in that market
  • Focus first on English-speaking markets and tech-focused early adopters

• Product Localization:

  • Localize product earlier than competitors
  • Convert product into 30+ languages
  • Key challenge: Engineers often resist localization work
  • Without localization, certain markets remain impenetrable

• Initial Target Markets:

  • Australia/New Zealand
  • UK
  • Parts of France
  • Markets accustomed to buying from US companies

• Implementation Approach:

  • Make product open to international customers
  • Support organic international growth
  • Don't force expansion into challenging markets (e.g., Japan) without natural traction
  • When natural clusters form in a region, invest in supporting that market

The strategy emphasizes removing friction from international adoption rather than forcing expansion, allowing natural market pull to guide international growth.