First1000: How Salesforce Acquired Its First 1000 Users
Salesforce’s first 1000 users came through bold "No Software" guerrilla marketing, an exclusive launch event, a freemium model, and personalized direct sales. Learn how this cloud CRM pioneer reshaped enterprise software.
In this First1000 article, we explore the early days of Salesforce, the company that revolutionized the software industry by pioneering cloud-based Customer Relationship Management (CRM). Founded in 1999 by Marc Benioff, Salesforce disrupted the traditional software model and built a billion-dollar empire. But how did it acquire its first 1000 users? Let’s dive in.
Founding Salesforce: The Vision for Cloud CRM
Before founding Salesforce, Marc Benioff had spent 13 years at Oracle, where he learned the ins and outs of the software industry. He saw a massive opportunity in the SaaS (Software as a Service) model, believing that software should be hosted in the cloud rather than installed on-premises.
At the time, enterprise software was expensive, slow to implement, and required costly IT infrastructure. Salesforce introduced a subscription-based, on-demand CRM, eliminating the need for hardware and making enterprise software accessible to small and mid-sized businesses.
Ingenious Strategies to Acquire the First 1000 Users
- "No Software" Guerrilla Marketing 📢
Salesforce’s launch strategy was aggressive and bold. They positioned themselves against legacy software giants like Oracle, SAP, and Siebel by running a strong anti-software campaign with the slogan "No Software." They staged protests outside Siebel conferences and ran billboard ads promoting their cloud-based approach. This unconventional marketing created controversy and buzz, attracting attention from early adopters. - Freemium Model to Get Users Hooked 🎁
Instead of asking businesses to commit large upfront payments like traditional software companies, Salesforce offered a free trial. By allowing users to experience the product with minimal risk, they built trust and created word-of-mouth momentum. Early users who saw value in the CRM quickly converted into paying customers. - Exclusive Launch Party & VIP Outreach 🎉
To generate buzz, Salesforce hosted a launch party at Marc Benioff’s apartment in San Francisco. The event attracted tech influencers, journalists, and potential customers, setting the stage for media coverage and credibility. Additionally, Benioff leveraged his Silicon Valley connections to get early enterprise customers onboard, helping Salesforce gain initial traction. - Direct Sales & Personalized Onboarding 📞
Unlike traditional enterprise sales models that required months of negotiation, Salesforce’s model was subscription-based and scalable. The team focused on calling and emailing businesses directly, offering one-on-one product demos. This hands-on approach helped them convert small businesses into paying customers quickly. - Strategic PR & Media Coverage 📰
Salesforce gained massive exposure by partnering with tech journalists to push their cloud-based vision into mainstream discussions. By emphasizing how their software eliminated IT complexity, they positioned themselves as the future of CRM, attracting both startups and enterprises looking for modern solutions.
Salesforce Today
Today, Salesforce is a global leader in cloud computing and CRM, serving 150,000+ businesses worldwide. It has expanded into AI, analytics, and enterprise solutions, acquiring companies like Slack, Tableau, and Mulesoft. As of 2024, Salesforce is valued at over $250 billion and is publicly traded on the New York Stock Exchange (NYSE: CRM).
What is First1000?
First1000 is a series that explores how the world’s most successful companies acquired their first 1000 users. We analyze the marketing tactics, strategic decisions, and early user acquisition methods that helped startups grow from idea to industry leaders.