Software Platform Consulting

MAY 6, 2019

There are many great articles about SaaS metrics on the web (e.g., see here , here and here.) There are also great resources for metrics specific to marketplaces (see here ). But much of my work is with a special kind of network, where one side of the platform is an enterprise buyer (or supplier) and on the other side is their supply base (or customers). Typically one side’s enterprises tend to be much larger than the other side’s. That’s why I call them enterprise-driven.

Metrics 53

Metrics Compensation Enterprise B2B 53

Software Platform Consulting

JUNE 25, 2019

Change Healthcare is going public (again). The IPO provides another opportunity to examine a massive B2B inter-enterprise network, Change Healthcare’s Intelligent Healthcare Network. I previously wrote about this network when it was called Emdeon ( see here ). It’s a story of how a small EDI player became an impressive company through acquisition and organic growth. Every network entrepreneur should know this great story.

Healthcare 50

Healthcare Government Scaling Consulting 50

Software Platform Consulting

OCTOBER 9, 2019

As taxpayers, we should want to know how well our dollars are spent. At the Federal level, most of these dollars are spent on social security, healthcare, and defense (see below). Articles about spending in these areas are easy to find, but the price of F-35s or my dad’s medicare is too complex for this blog. Instead, let’s focus on the prices paid for common commercial catalog items that we can all relate to. Government Catalog Spend.

Government 46

Government Healthcare AI Education 46

Software Platform Consulting

MAY 28, 2019

Source: [link]. This is the third in my series on SaaS Metrics for Enterprise-Driven B2B Networks. I spend very little time on issues of compensation on this blog. But it turns out, this is a really important issue for Enterprise-Driven B2B Networks. As discussed in the prior post , many networks of this type, subsidize one side of the network, to make money from the other side.

Enterprise 50

Enterprise Compensation B2B Metrics 50

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In today’s climate, it’s more important than ever for SaaS companies to build rock-solid financial models on which they can operate and make key business decisions. The teams at SaaSOptics and Burkland have teamed up to create a comprehensive guide to the most difficult aspect of financial modeling: revenue forecasting.

Revenue

Software Platform Consulting

MAY 8, 2019

Fleetcor (FLT) closed on its acquisition of privately-held nvoicepay on April 1, 2019. Fleetcor’s first quarterly earnings report since the acquisition provides insight into the economics of the B2B payments space. Nvoicepay. Nvoicepay is interesting, in part, because it is a pure-play payments provider. The company takes a payment file from a buyer. It then disburses the funds to the buyer’s suppliers in a manner nvoicepay has determined in negotiation with the supplier.

B2B 50

B2B Acquisition Banking Consulting 50

Software Platform Consulting

AUGUST 5, 2019

Gartner recently published its 2019 Magic Quadrant for Procure-to-Pay Suites. Once again , I have superimposed valuation information onto the Magic Quadrant. (I I still don’t understand why Gartner has not varied the size of the “dots” to add more information to the charts. For instance, each vendor’s dot could be sized in proportion to their NPS scores, revenue, or valuation. See Spend Matters’ Solution Maps.).

AI 40

AI Machine Learning Revenue Consulting 40

Software Platform Consulting

JULY 1, 2019

My last post was partly about healthcare payments in the form of Change Healthcare’s Intelligent Healthcare Network. I did not set out to write another post about healthcare payments, but reading Phreesia’s S-1 compels me to. Phreesia has three “businesses” in one: SaaS applications, payments, and life sciences advertising. Phreesia Threat #1: SaaS Applications. If you have been to a doctor you have some idea of what Phreesia’s SaaS applications do!

Advertising 40

Advertising Consulting Subscription SaaS 40

Software Platform Consulting

JUNE 3, 2019

Welcome to the last, and most important, in my series of posts on metrics unique to Enterprise-Driven B2B Networks. The last metric, buyers per supplier, is easy to calculate if your platform is architected as a network. (If If you did not architect your platform so suppliers have one account for all buyers, shame on you.). Suppliers Per Buyer. Every enterprise-driven B2B network proudly tells you they are great at enabling your enterprise’s suppliers.

Enterprise 40

Enterprise B2B Metrics Consulting 40

Software Platform Consulting

MAY 20, 2019

Fiverr, a marketplace for freelancers just joined the parade of software companies going public. The Fiverr filing sets up a comparison of Fiverr versus Upwork, the grand-daddy of freelancer marketplaces. Upwork went public last year.) (See See here and here ). Upwork Versus Fiverr: A Different Approach to Services. The most basic difference between Upwork versus Fiverr is fascinating. On the Upwork platform, buyers issue RFQs for projects and invite freelancers to bid on those projects.

SMB 40

SMB Business Model Consulting Pricing 40

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Software Platform Consulting

MAY 14, 2019

Last week I wrote a post about Fleetcor’s acquisition of Nvoicepay. The acquisition represented an opportunity to learn more about the economics of B2B payments. The acquisition also prompted me to review Bottomline’s financial reports. Bottomline owns Paymode-X, the largest B2B payment network in the US. Paymode-X boasts payments of more than $200 billion annually and over 400,000 payees. Nvoicepay, by contrast, processed payments of approximately $20 billion annually.).

Technology 40

Technology B2B Acquisition Banking 40

Software Platform Consulting

JUNE 26, 2018

Yesterday, the Supreme Court of the United States ruled in favor of American Express (Amex) in an antitrust case 11 states had brought against Amex (see here ). If you are interested in two-sided markets, platforms, and pricing you will want to read the Supreme Court’s decision written by Justice Thomas and the dissent written by Justice Breyer (see here ). Full disclosure: There’s a fair bit of legalese, so I skimmed it. But, it sounds cool to say I read a Supreme Court opinion.)

Business Model 43

Business Model Consulting Branding Business 43

Software Platform Consulting

MAY 9, 2017

Established in 1995, Angie’s List was the pioneer in the home services marketplace. Home Advisor (IAC) announced last week it is acquiring Angie’s List (ANGI) for more than $500 million. This price represents a 44% premium over Angie’s List’s depleted closing stock price (see below)). I am sad to see Angie’s List go. Triumph of the One-Sided Pricing Plan. Angie’s business model was a prominent differentiator from its competition in the home services market.

Business Model 48

Business Model Advertising Consulting Business 48

Software Platform Consulting

MAY 16, 2017

I love the word “oligoply” It’s a fancy word for a market structure in which a few companies have the large majority of market share. The recent news reminds me just how many markets are becoming oligopolistic–especially those dominated by platform software. Before We Get to Software… Warren Buffett recently announced that he was buying airline stocks. This is a man whose greatest quotes include many disparaging remarks about the airline industry (see here ).

Wireless 40

Wireless Software Healthcare Airlines 40

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As a group who provides the software tools necessary to manage the contracts to cash process, Aysling onboards users and projects daily, and has learned some important tips if you want to be successful when onboarding new clients and/or projects.

Onboarding

Software Platform Consulting

SEPTEMBER 27, 2016

Early (and Fuzzy) Saas Metrics From B2B Networks. Until a B2B Network catches on, the metrics can be gloomy. (The The first few years of the Ariba Network were pretty dismal, for instance.) The result is that for the first few years of a B2B network’s life you tend to see silly press releases from these networks touting their growth in all manner of odd metrics: percentage growth versus growth in absolute numbers (always huge when you start from zero). new partnerships. awards.

Metrics 40

Metrics Consulting Enterprise Finance 40

Software Platform Consulting

SEPTEMBER 6, 2016

Sunday’s Business Insider had a great article on, Cargomatic, a company promising (as do many others) to be the “Uber for Truckers” By that, Cargomatic means it will match shippers with goods to ship with truckers with excess capacity. On paper it is a great idea in a huge market: less than truckload (LTL) shipping.

B2B 40

B2B Consulting Marketing Technology 40

Software Platform Consulting

MARCH 23, 2016

Three separate events last week reminded me that every spend category has its “dirty little secrets” Suppliers can exploit these “dirty little secrets” to squeeze a little more from buyers than buyers bargained for. Not all of these secrets are nefarious, but all reflect the inherently deeper category knowledge suppliers have and the limited resources buyers have to “sweat the details” in every category.

Airlines 40

Airlines Transportation Travel Machine Learning 40

Software Platform Consulting

MARCH 7, 2016

For those of us who follow pricing strategy in two-sided markets, last week was a milestone. Angie’s List, which invented the home services marketplace (in 1995) announced it would drop its “paywall” The paywall charged buyers to search its directory and reviews before communicating with contractors. Angie’s List will now offer a freemium model for homeowners (buyers) and will continue to offer a freemium model to contractors/service providers.

Pricing 40

Pricing Business Model Advertising Consulting 40

Advertiser: Amplitude

As part of our goal to continue helping our community during these times, we wanted to share with you this critical data on the state of digital products across industries and provide context on how businesses are responding to the changing winds.

Trends

Software Platform Consulting

AUGUST 6, 2015

The two questions I’m most often asked are: 1. How do you keep your hair looking so lush and luxurious? How much can a B2B Marketplace or Multi-Sided Platform charge for its services? Some folks call this the platform’s “take rate” ). The answer to the former question will need to remain a mystery, but the answer to the latter follows. B2B Marketplace Services.

B2B 40

B2B Consulting Communication Finance 40

Software Platform Consulting

NOVEMBER 25, 2014

The vast majority of tech press is about B2C software companies or software for IT department (e.g., databases, security, performance monitoring and other stuff) that does not excite me. But, there are a few good b2b blogs and newsletters those of you interested in enterprise cloud business applications should follow for inspiration. My nominations, in no particular order, are as follows: Price intelligently.

B2B 40

B2B B2C Software Consulting 40

SaaStr

OCTOBER 27, 2020

“To keep you honest, and help the entire company and team keep track of how you are really doing … build a simple, rolling, “L4M” (Last Four Months) model. It just takes minutes.”. The Power and Honesty in a L4M Model. Build One Now. SaaStr [link].

Finance 272

Finance Metrics Leadership Scaling 272

SaaStr

OCTOBER 11, 2020

If someone is looking for another job in Year 1, Even if they don’t take it … You’ve already basically lost them. Do more 1-on-1s Get more 360 feedback Talk more. I know you don’t have time. Make it. — Jason BeKind Lemkin (@jasonlk) October 11, 2020.

Compensation 283

Compensation Interviewing Engineering Scaling 283

Advertiser: Data Robot

DataRobot together with Snowflake – a leading cloud data platform provider — is helping data scientists stay current with the latest technology and data science best practices so that they can excel in an increasingly AI-driven workplace. Five Things a Data Scientist Can Do to Stay Current offers data scientists guidance for thriving in AI-driven enterprises.

Data

SaaStr

OCTOBER 28, 2020

Pre-Covid, I was walking on the streets of San Francisco and bumped into a terrific Unicorn CEO. A beloved CEO of a beloved startup. We caught up briefly, and I asked if there was any way I could help. He said, “I’m looking for a great VP of Marketing.” ” Oh goodness, I thought. It really never ends or gets easier. And it’s true … it probably doesn’t. Hopefully, you’ll have one or two great VPs that do stay forever, and go the distance.

Company Culture 192

Company Culture Management Scaling B2B 192

SaaStr

OCTOBER 7, 2020

As you scale up in SaaS, one thing I can almost guarantee is that you are going to hire some VPs who were either fired or quit their last role. Especially in Bay Area-centric startups.

Interviewing 284

Interviewing Scaling Startup Metrics 284

SaaStr

OCTOBER 20, 2020

Who should you hire, with limited budget? A VP of Sales? A Director of Demand Gen? Or A Head of Product? The answer is Yes. A truly great hire is >always< accretive. At least within just a few months. Hire anyone truly great you can find. Find a way.

Headcount 242

Headcount Engineering Banking Revenue 242

SaaStr

OCTOBER 26, 2020

Your marketing site has to be: Clearer Simpler More Obvious More Up-to-date Better designed Easier to contact Faster Slicker Better Informing. Than your actual product. Yet, it's almost always not. — Jason BeKind Lemkin (@jasonlk) October 25, 2020.

Marketing 197

Marketing Growth Marketing Engineering Branding 197

Advertiser: UserTesting

Up to 80% of new products fail. The reality is harsh and the reasons why are endless. Perhaps the new product couldn’t oust a customer favorite. Maybe it looked great but was too hard to use. Or, despite being a superior product, the go-to-market strategy failed. There’s always a risk when building a new product, but you can hedge your bets by understanding exactly what your customers' expectations truly are at every step of the development process.

Development

SaaStr

OCTOBER 23, 2020

"Secondary liquidity", where you can sell some of your shares in a round, is more and more common now. Should you sell if you can? The answer to me is simple: Are you OK if it turns out you never get another chance to sell? If the answer is Yes, don't sell. Otherwise, sell.

Pricing 214

Pricing Leadership Marketing 214

SaaStr

OCTOBER 2, 2020

So it’s Q4. And the run up to the holidays and the end of the year is sometimes a time we quietly ask ourselves, after a few (or more) years in … Could Someone Do a Better Job as CEO? I did. I still do sometimes.

Leadership 270

Leadership Scaling SaaS Marketing 270

SaaStr

OCTOBER 16, 2020

If your competition doesn't offer phone support, But you do … Watch your NPS eclipse theirs, all things being equal. Isn't that worth a few bucks? — Jason BeKind Lemkin (@jasonlk) October 16, 2020.

Customer Success 227

Customer Success Churn Customer Support Engineering 227

SaaStr

OCTOBER 10, 2020

Stewart Butterfield threw out an interesting statistic in a recent interview with Fast Company … over 20% of Slack employees have been hired since Covid-19 hit and the shelter order in SF went into place. 20%+ of Slack's employees have been hired since Covid-19 hit.

Company Culture 241

Company Culture Interviewing Leadership 241

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AI

SaaStr

OCTOBER 11, 2020

Q: What are some of the most costly mistakes done by novice investors? My biggest mistakes in SaaS investing actually in the end haven’t been truly costly because, in the end, power laws mean your winners overwhelm your losers if you do it right. A few winners more than make up for the mistakes.

Investment 239

Investment Startup SaaS Pricing 239

The Daily Egg

OCTOBER 28, 2020

Document management software—or DMS software for short—is the modern way to organize your company’s digital files. These tools eliminate the need for storing paper documents in physical drawers and filing cabinets.

Software 162

Software Management 162

SaaStr

OCTOBER 21, 2020

A little while back, we did a great digital event, The New New in Venture. We explored how venture has changed since Covid with many of the best, and many I look up to, from Aileen Lee of Cowboy Ventures to Satya Patel of Homebrew to Keith Rabois of Founders Fund and so much more.

Interviewing 205

Interviewing Investment SaaS Sales 205

SaaStr

SEPTEMBER 13, 2020

90% of my evaluation of any leader that works for me is the quality of people they can get to work for them. This could be wrong… Maybe it should be 95%. — Todd McKinnon (@toddmckinnon) September 13, 2020. Recruiting is tough. I certainly don’t do it well enough.

Interviewing 270

Interviewing Engineering Management Scaling 270

Speaker: Daniel "spoons" Spoonhower, CTO and Co-Founder at Lightstep

Many engineering organizations have now adopted microservices or other loosely coupled architectures, often alongside DevOps practices. Together these have enabled individual service teams to become more independent and, as a result, have boosted developer velocity. However, this increased velocity often comes at the cost of overall application performance or reliability. Worse, teams often don’t understand what’s affecting performance or reliability – or even who to ask to learn more. Distributed tracing was developed at organizations like Google and Twitter to address these problems and has also come a long way in the decade since then. By the end of this presentation, you’ll understand why distributed tracing is necessary and how it can bring performance and reliability back under control.

Engineering