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Clouded Judgement 3.22.24 - ERR vs ARR and the Conundrum of AI Revenue Streams Today

Clouded Judgement

In it's truest form, ARR is used by pure SaaS business models to describe the aggregate annual value of the entire customer set. Many laude the SaaS business model because ARR is inherently predictable - you know what you’re revenue will be over the coming 12 months, and sometimes even further out than that.

AI 183
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That’s a nice little $1-2M SaaS company you have here. Call me to discuss if it will scale!

The Angel VC

At that point it becomes a lot harder because the next set of customer acquisition channels will likely be much more expensive. But it would also lead to the generation of a large number of small-ish but still very viable SaaS businesses, many of which could generate very decent profits for their founders.

Scale 192
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Everything You Need to Know About Freemium Pricing

OpenView Labs

How to optimize your freemium model. Stories of ditching a freemium model. When is freemium the right strategy for your business? Is Freemium The Right Business Model? Is freemium an effective lead generation, conversion, and revenue driving strategy for your recurring revenue-based business?

Pricing 82
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SaaS Growth: Top Strategies and Trends for SaaS Growth

ProfitWell

By almost all key metrics, now is a great time to get into the SaaS business model. Running your own server to handle your customer's valuable data requires a huge investment to match the same level of security and reliability that comes baked into services like Amazon AWS and Microsoft Azure cloud. AI Integrations.

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SaaS, Subscription, and On-Premises Software – Don’t Confuse Subscription with SaaS

OPEXEngine

The terms aren’t universally understood, nor are the implications of each on the financial model of a company, so the following is an effort to provide an overview. At OPEXEngine, we pull apart the different nuances of each business model to make sure we are benchmarking companies correctly. In addition, it affects cash flow.

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Facebook Workplace’s Julien Codorniou on turning companies into communities

Intercom, Inc.

As Workplace’s global head, Julien Codorniou has been spending the past few years exploring how to make his department align with Facebook’s mission while executing an entirely different business model that relies on companies promoting community within their workforce. Unlocking a new business model.

Scale 151
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Using Gross Margin to Score Your Product’s Maturity

OpenView Labs

While inevitable and with multivariate causality, it speaks to the product’s maturity and business model. Offering free usage is par for the course as a SaaS customer acquisition strategy. When this happens, fix the product, pivot the business model, or expand the distribution channels.

Scale 52