Remove Acquisition Remove AWS Remove Business Model Remove Pricing
article thumbnail

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
article thumbnail

Everything You Need to Know About Freemium Pricing

OpenView Labs

The much-discussed pricing strategy took over the SaaS world and helped fuel the phenomenal success of SaaS pioneers like Dropbox, Evernote, SurveyMonkey and Hootsuite. Here’s a list of the top freemium pricing strategy resources: Table of Contents. When is freemium the right strategy for your business? Freemium success stories.

Pricing 82
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

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
article thumbnail

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. Pricing Changes.

article thumbnail

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. Pricing wars are another source of margin compression. Watching margin compression ensures vigilance against irrelevance.

Scale 52
article thumbnail

A Look Back: “SaaS Metrics Masterclass: Key Business Metrics, Pricing Strategies and Billing Models with Stripe’s Head of France and Southern Europe, Guillaume Princen” (Video + Transcript)

SaaStr

Or maybe ARR, depending on your model. Customer Acquisition Cost (CAC). & It wasn’t the case 20 or even 10 years ago, where the business models of the internet were more focused on eCommerce, marketplaces, or even advertising. Customer acquisition. There’s obviously hybrid models. Transcript.

article thumbnail

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.