Good news & bad news about SaaS

Practical Advice on SaaS marketing

The good news about the SaaS subscription model: long-term paying customers. The bad news about the SaaS subscription model: long-term paying customers. With the software-as-a-service (SaaS) business model, vendors can build a sustainable source of long-term, predictable revenue. As long as the subscription fees cover customer acquisition expenses and other costs, the model should support a profitable, growing business.

Saying "no"

The Angel VC

Every day you meet great new people, cool products, exciting technologies and interesting new business models. Nothing (in business life) is more exciting than seeing a company grow from two-guys-in-a-garage stage to become a relevant or maybe even dominant player in a large industry sector, and as an early-stage investor you have a realistic chance to be part of some of these success stories. Being an angel investor is a fantastic job.

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Building connections to your SaaS customers

Practical Advice on SaaS marketing

These are essential ingredients for a successful SaaS business model. I'm one in a million. Actually, I'm number 172,370 in a million. So says the thank you note I recently received from Reid Hoffman, Co-founder and Chairman of LinkedIn, as a way of showing his appreciation to me and the other first million LinkedIn users.

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Social media is a good fit for SaaS

Practical Advice on SaaS marketing

Besides letting followers know that you've just ordered pepperoni and pineapple on your pizza, your flight from SFO to Logan is stuck on the tarmac, or that you're heading to Tahrir Square to protest against the government, Twitter and the other social media networks can be useful for businesses as well. And they're an especially good fit for software-as-a-service (SaaS) businesses. This fits the SaaS model, which benefits from close proximity to customers.

How not to calculate a SaaS marketing budget

Practical Advice on SaaS marketing

SaaS marketers are usually better off with a metric more appropriate to the unique SaaS business model: marketing spend as a percentage of the lifetime value of the customer. A few bad outcomes are possible: Under-funding: A business fixated on measuring marketing as a percentage of annual revenue is likely to under-fund marketing and choke off the fuel for customer acquisition.

What is a good SaaS Churn Rate?

SixteenVentures

Honestly, for those companies, it isn’t a lack of customers in the front door that is stopping their growth; it’s the constant flow of customers out the back door that is killing their business! To grow by just $1, you’d have to acquire $47 in new business!

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Move Over Subscriptions. The Future Is Elastic And Built Around Relationships.

Chargify

Over the last decade, recurring revenue has emerged as the preferred model for businesses moving beyond transactional commerce. pricing or the traditional “Good, Better, Best” plans—many businesses have found static subscription offers don’t always align with customers’ needs and limit growth potential. Businesses with subscription offers must find new ways to differentiate themselves from competitors by shifting the focus from the subscription to the customer relationship.

How Innovative SaaS Companies Leverage Pricing And Packaging To Beat The Competition

Chargify

We see this not as a passing trend, but an integral part of the Relationship Economy and the future of SaaS pricing for all successful businesses. And not the ‘one size fits all’ model. SaaS businesses are using a variety of methods to stand out in saturated markets , and offering more customizable purchase options is a strong differentiator. Across the board, we are witnessing a consumerization of business, with consumer mindsets bleeding into the B2B approach.

We?re About To See a Lot More SaaS Debt

SaaStr

Salesforce’s IPO is also seen as a test of a new business model that could shake up the software industry. The company is the poster child for subscription-based software, a model that’s gaining popularity among corporate buyers. Things started changing in 2011.

Pitch Deck Templates Won’t Get You Funding, Here’s What You Can Do

Hitenism

Every single one of these businesses is unique. Hiten Shah (@hnshah) August 5, 2011. But that was back in 2011. What hasn’t changed is that today’s investors still want to invest in great businesses and the teams behind them. The pitch deck is your chance to explain why your business will grow and succeed in the future. Here are five ways to take a pitch deck made using a template and make it work for your business.

Two years into investing out of our first Impact Fund: here’s what we’re learning

TechStars

Of these companies, Zipline , which builds drones to deliver life-saving medical supplies and went through our 2011 Techstars Seattle program, was recently valued at $1.2B. Two years ago, we raised our first impact fund, closing just under $7M in the fall of 2017. Since then, we have made over 73 investments and our fund is nearly fully invested. .

The decade software ate the world

Inside Intercom

It was in August 2011 that Marc Andreessen coined the famous phrase “ Software is eating the world ” in a Wall Street Journal op-ed. In China, WeChat, which launched in 2011, sends about 45 billion messages every day. Rise of the cloud and SaaS businesses.

Top 10 Tools to Get Your App PLG-d

Frontegg

Besides it’s proven business results, this strategy helps empower end-users to get the best possible product for their needs. This philosophy applies to both low and high touch business models, where the vendor has to eliminate all potential usability problems that may arise.

MongoDB’s Playbook for Breaking Into and Dominating a Market

OpenView Labs

When Francesca joined MongoDB in 2011, the company was going through what she describes as an incredibly hectic and exciting phase of hyper growth. I think there was a month in 2011 or 2012 where we did more events than there were days in the month,” Francesca recalled.

CEOs of Zapier, Walkme and Dialpad: How to Build Your First Management Team (Video + Transcript)

SaaStr

Nikos Moraitakis, CEO @ Workable, moderates this insightful session with Dan Adika, CEO at WalkMe; Mallun Yen, Chief Business & Product Officer at RPX Corp; Craig Walker, CEO at Dialpad; and Wade Foster, CEO @ Zapier. An insurance company is, as you may know, a highly regulated business.

SaaStr Podcast #398 with Salsify Co-Founder & CMO Rob Gonzalez

SaaStr

Both of us and our third co-founder, Jason Purcell, were at a company called Endeca, which was a search engine for e-commerce, exited to Oracle for over a billion dollars in 2011. How do you think about services revenue, and your willingness to have it as part of your business today, really?

SaaStr Classic: Jyoti Bansal of Harness.io and AppDynamics; Dev Ittycheria of MongoDB (Video + Transcript)

SaaStr

They talked about product adoption, sales alignment, freemium models and lessons they have learned throughout their successful SaaS careers. I still remember the very first time I met Dev back in 2011 and I was this engineer turn first-time founder, CEO running the business.

8 BIG RYG Speakers to Follow on Twitter

ChurnZero

Godard Abel, G2 Godard ( @godardabel )is CEO of G2 , a business software review website he co-founded in 2012. H e subsequently served as SVP/GM of the SteelBrick business unit until May 2017 when he left to refocus on entrepreneurial adventures.

SaaStr Podcasts for the Week with Domo and Gorgias — April 24, 2020

SaaStr

As for John, prior to Domo he served as vice president for strategy and business operations for Adobe’s Digital Experience business, driving more than $3 billion in annual revenue. And as a CEO or any kind of line of business leader, decision making is a function of information.

Why Most Companies Fail At Moving Up or Down Market

Brian Balfour

In part four I covered Channel Model Fit - that channels are determined by your model. In part five I covered Model Market Fit - your model influences the target market and vice versa. Because they use Outbound Sales they must have High ACV's to support the channel (Channel Model Fit). There are thousands of customers in the enterprise space times their ACV's equal a greater than $100M revenue business (Model Market Fit).

Matching Price to Value: 3 Lessons in Monetization from Menlo Ventures (Video + Transcript)

SaaStr

SaaS is about creating long-term value for your customer, and being compensated appropriately for that value as a business. I began my career in new product development and starting in 2011 got really excited about the high growth phase of a company. I think it’s such an interesting window into the company’s business model and I bucket companies into one of three buckets. A lot of freemium businesses use this tactic.

SaaS Pricing Guide: When & How to Raise Prices Without Losing Customers

OpenView Labs

While Segment may be an extreme case, the business is far from unique in learning that it was leaving money on the table due to its pricing. Plus, it allows startups to build a more sustainable business model, and hence be more in control of their own destiny.

Is Strategy Dead in Tech? The Winners Don’t Think So

OPEXEngine

Although the San Jose-based company has always been a leader in developing world-class creative software like Photoshop and Illustrator, its go-to-market model (licensing boxed software) eventually slowed it down. What are we learning about this business and how is it changing?

The Ultimate SaaS Pricing Resources Guide

OpenView Labs

Cashing in on the Right Model. After four months of an unprecedented global crisis, SaaS companies are bouncing back while product led growth businesses are trading at almost 2x higher revenue multiples they started with. Cashing in on the Right Model.

The 5 Best Email Marketing Companies of 2020

Neil Patel

These companies will help you to strategize, collect relevant email addresses, create, and manage email marketing campaigns that drive business growth. Hire any of them, according to your needs, and they’ll help you to turn email marketing into a growth channel for your business. Fix My Churn specializes in these two areas: Fix My Churn collaborates with tech companies with a monthly subscription business model. Almost everyone uses email.

What Are The Top 50 SaaS Companies in 2020?

SmartKarrot

SaaS companies have transformed the way global businesses work. In this blog we’ll talk about SaaS business and top 50 SaaS companies in 2020. Owing to cost-effectiveness and confidentiality attributes, SaaS businesses continue to opt for cloud services. Business Ops.

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Miro’s Andrey Khusid on the art of distributed teamwork

Inside Intercom

Here are five quick takeaways: In 2011, Forbes Magazine called RealtimeBoard (Miro’s previous iteration) “a virtual whiteboard on steroids” We chatted to Andrey about this description to see if the shoe still fits today.

From Bootstrapped to Category Leader: Lessons from Zapier’s Founders

OpenView Labs

We put in long months of late nights, early mornings and weekends before we were ready to graduate from side project to full-fledged business. Today, we are a 100% distributed team of over 250 people providing millions of loyal users with the ability to connect business apps and automate workflows. Since our founding in 2011, we’ve come a long way. The customer has to be at the forefront of any business. The point is, no part of your business is ever “done.”

Customer retention is the new conversion

Inside Intercom

The old world SaaS model was basically all about sign up and convert. The new SaaS model is subscription revenue-driven, which begs the question: what is a conversion today? It turns out that it’s not just us within the SaaS business that are realizing that retention matters. “Most importantly, subscription businesses enable you to think about marketing as a function of delivering customer success” This shift moves us from brand promiscuity to brand loyalty.

The Quick, Smart & Actionable Guide To Building Your Sales Process

Sales Hacker

The top professionals at hyper-growth companies are busy hacking their sales process. While some experts view selling as an art of persuasion, all successful businesses approach it as a science composed of data, methods, metrics and processes. In a practical sense, your sales process serves as a model by which any member of your sales team can replicate success in finding prospects, solving customer problems, closing deals, performing upsells, and bolstering client loyalty. .

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Subscription Rockstars: How HubSpot Went From Zero to $500+ Million in Annual Revenue

Chargify

We will analyze both their mistakes and their victories to draw lessons that you can apply to your business. And, of course, we will pay special attention to how their subscription billing models and pricing strategies contributed to their growth. In 2006, Brian and Dharmesh started HubSpot with the aim of helping people grow their businesses through a less intrusive, more human approach to marketing. How HubSpot used inbound marketing to grow their business.

SaaStr Podcast #212: Nick Mehta, CEO @ Gainsight Discusses Why Burying Customer Success Under Sales Does Not Work

SaaStr

As for Nick, prior to Gainsight he was the CEO @ LiveOffice where he grew cloud archiving ARR from $2m in 2008 to $25m in 2011 and drove and negotiated the acquisition by Symantec for $115m in cash. Before LiveOffice Nick was Senior Director of Product Management @ Symantec where he led $378 MM market-leading email archiving / security businesses managing over 180 people across 3 continents. Amazon, that company is going to totally go out of business. Welcome to Episode 212!

State of the Cloud 2019: Europa Edition with Alex Ferrara, Bessemer Venture Partners (Video + Transcript)

SaaStr

What I’m going to do is talk a little bit about what we’ve seen over the course of the last year and then also talk about some metrics we track or we encourage our founders to track as they’re building their businesses, and then, lastly, try to go through a few predictions for the next couple of years. I think it’s also very telling when you think back 10 years ago to a time when Amazon was actually still a retail business.

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Norman Crowley on uncovering the business opportunities in tackling climate change

Inside Intercom

The Cool Planet Group CEO has had a fascinating career to date, having started and sold three businesses for over three-quarters of a billion dollars before he was forty – including Inspired Gaming and The Cloud. And by the time I was 20, I had sold that business to a local builder.

PODCAST 123: How to Go From a Transactional Model to a Subscription Model with Brandon Meyers

Sales Hacker

He even managed to help pivot the company from a programmatic transactional revenue model to a subscription model over the course of, not just the last three months during COVID, but over the course of the last few years. Building a business in Europe [14:37]. And this is 2011.

Nir Eyal on designing healthy habits – and the psychology behind them

Inside Intercom

Nir’s studies sit at the intersection of technology, business and psychology. A veteran of the advertising and video gaming industries, he has started (and sold) two technology companies and has taught at Stanford’s Graduate School of Business and the Hasso Plattner Institute of Design. Nir: The basic model hasn’t changed because it draws upon very old psychology and the work of people like B.F. Not every business needs to form a habit to be successful.

The Birth of Freemium

ProfitWell

Pricing models never made headlines until freemium came along. The freemium model as we know it now can be traced back to the early eighties, gaming culture, and a few press-savvy developers. Though slightly different to the model we see today, freeware incorporated the fundamental tenet of freemium: only pay when you get value. Around the same time, IBM developer Jim Knopf created a program he named PC-File, and followed the same model.