FastSpring

MARCH 15, 2021

That’s the beauty of subscription models. While implementing a subscription model means ongoing revenue, it also brings up many challenges for managing those subscriptions. You have to create a subscription-friendly product, infrastructure, marketing plan, and customer retention plan. Ease of Distribution.

Payment Features

Incredo

JULY 14, 2019

Whether you are a startup owner, a manager of a growing business or the CEO of an established company, you might find yourself asking questions like “ Should our SaaS subscription model be monthly, annually or both ?” or “ What are the best tips I can get in terms of annual vs monthly subscription models ?”.

Payment Features

Baremetrics

AUGUST 18, 2021

Invoicing is a sales process where a seller issues a commercial document to a buyer requesting payment. This document shows all products and services rendered, the payment owed, and the contact details of both the buyer and the seller. An invoice also represents credit because the seller will only receive cash at a future date.

Payment Features

SaaStr

MAY 25, 2022

The Sword: a product-led growth business. Every successful business you admire—Google, Facebook, Microsoft, Apple, et al.—was was built on a solid, profitable business model. These professionals had to earn their spot by selling Expensify subscriptions. Nothing else matters. The Shield: market consensus.

Scale

Baremetrics

AUGUST 22, 2021

Subscription revenue can be defined most simply as a model which generates income from customers through recurring fees that are paid at regular intervals. These can be weekly, monthly, or annual payments. Subscription Pricing Models How to Get Subscription Pricing Right The Advantages of a Subscription Revenue Model 1.

Payment Features

Stax

JANUARY 28, 2024

Long before the digital age, newspaper and magazine companies have been using the subscription model to create and retain a consistent readership for their publications. This business model has now been adapted very well in the internet age, especially in the SaaS (Software-as-a-Service) and eCommerce industries.

Payment Features

Practical Advice on SaaS marketing

OCTOBER 9, 2012

If you manage a software-as-a-service (SaaS) company, at some point you'll be forced to make a tough decision about your customer acquisition process: Feed it or starve it? Because of the way the SaaS business model works, if you feed the customer acquisition process, you hurt profits and burn cash.

Acquisition

SaaStr

JUNE 5, 2020

With the Salesforce IPO in 2004, we saw the first sign that institutional investors were comfortable with a standard set of SaaS metrics: Churn, sales efficiency , ARPU, LTV, customer acquisition cost , and so on. . It’s hard to imagine a world where analysis didn’t understand recurring, subscription based revenue for technology products.

Venture Capital

SaaStr

OCTOBER 26, 2022

But payments can be low gross margin, and they are for Wix. Business Solutions” including payments has gross margins of only 21%. Pure software (“Creative Subscriptions”) has more traditional software gross margins of 61%. But user acquisition marketing isn’t being touched. Embedded fintech often has a price. #3.

Payments

Incredo

OCTOBER 8, 2019

Just look at customer acquisition vs retention statistics. Existing customers are 4-5x more likely to repurchase, refer your product and forgive your mistakes ( source ). What if I am starting out a business and don’t even have leads, not to mention SaaS customer acquisition strategy? What do you see?

Acquisition

Neil Patel

APRIL 12, 2021

They offer some of the best-known subscription boxes around, reflecting an increasingly popular (and potentially lucrative) business model. Why Should You Launch a Subscription Box? According to MarketsandMarkets , the subscription and recurring billing market will grow to around $7.8 The premise is simple.

Outsourcing Services

Clouded Judgement

JULY 16, 2024

” How OneStream Makes Money From the S-1: “Our business model centers on maximizing the lifetime value of a customer relationship. We recognize revenue from our SaaS contracts ratably over the term of the subscription period, which is typically three years but can range from less than one year up to ten years.

Benchmarks

Practical Advice on SaaS marketing

MARCH 5, 2012

Having lived through several acquisitions during my career in technology companies, I have some idea of what the folks at SuccessFactors (acquired by SAP last year) and Taleo (acquired by Oracle a few weeks ago) are going through. And we're talking about the entire experience - reliability, security, deployment, upgrades, etc. -

Acquisition

Practical Advice on SaaS marketing

JUNE 1, 2012

Another week, another software-as-a-service (SaaS) acquisition. To be more accurate, it's really "another week, another four SaaS acquisitions." Among the more prominent purchases, Oracle bought Vitrue, following its acquisitions of Taleo and RightNow. Better yet, it's a consistent revenue stream, driven by subscriptions.

Acquisition

Incredo

OCTOBER 8, 2019

Just look at customer acquisition vs retention statistics. Existing customers are 4-5x more likely to repurchase, refer your product and forgive your mistakes ( source ). What if I am starting out a business and don’t even have leads, not to mention SaaS customer acquisition strategy? What do you see?

Acquisition

SaaSOptics

APRIL 7, 2022

” Or, as Openview Partners defines it, “ product-led growth is an end user-focused growth model that relies on the product itself as the primary driver of customer acquisition, conversion, and expansion.” A freemium business model allows companies to build up a large initial user base at no additional costs.

Business Model

ProfitWell

NOVEMBER 6, 2019

The subscription revenue model is hardly new. But in the past few years, subscriptions have seen a bit of a resurgence. In fact, you'd be hard-pressed to find an industry that hasn't seen at least one subscription success story: Cars. Even the humble houseplant doesn’t seem immune to the subscription economy.

Payment Features

User Pilot

AUGUST 31, 2023

What is customer acquisition for SaaS, and how can you leverage it to drive sustainable growth ? The purpose of customer acquisition is to expand and make more revenue. Customer acquisition funnel stages in SaaS are Awareness, Consideration, Evaluation, Conversion. What is customer acquisition?

Acquisition

Casey Accidental

JULY 17, 2023

I was recently on Lenny Rachitksy’s podcast again, and one of the topics we discussed was consumer subscription business. I thought I would actually write down a lot of those thoughts and add some more depth for founders and employees working on these businesses. Why is B2B Subscription So Good?

Payment Solutions

Practical Advice on SaaS marketing

AUGUST 8, 2015

And you’ve been racking up customer acquisition costs all along the way. The SaaS customer acquisition machine That’s exactly how the software-as-a-service (SaaS) business model is supposed to work. Of course, the machine only works if the paying customer sticks around long enough to recover your acquisition costs.

Payment Solutions

Baremetrics

AUGUST 1, 2021

Acquiring customers for SaaS is a completely different ball game altogether than, say, for the traditional business models (think: eCommerce, for instance). In the SaaS industry, acquiring new leads through short-term marketing promotions will not cut it--which works as a killer strategy for the eCommerce business model.

Acquisition

Chart Mogul

OCTOBER 3, 2019

The customer acquisition cost can help you create, measure, and improve a business model that will put your business on the path to profitability. You’re starting a new business. How about your business model ? What is the Customer Acquisition Cost? CAC stands for customer acquisition cost.

Acquisition

ProfitWell

MAY 21, 2020

Customer acquisition vs. customer retention—which one is better? Nevertheless, many companies focus the majority of their time and resources on acquisition. In reality, though, retention offers a much higher ROI on advertising spend for certain business models—and is often much more cost-effective than its counterpart.

Acquisition

Chaotic Flow

MARCH 25, 2014

My first reaction was something like: “Well our current booking rate is pretty strong and we’re a SaaS business, so even with no immediate improvement to bookings we’ll continue to pile up revenue quarter after quarter, right?” Every business tracks some relevant set of financial and operational metrics. SaaS Business Stability.

Metrics

User Pilot

JULY 30, 2023

Customer retention vs acquisition cost: Which metric matters more? Thus, striking the right balance between acquisition and retention costs significantly improves profitability and sustainability. TL;DR Customer acquisition is the process of attracting and converting prospective users into paying customers.

Acquisition

FastSpring

MAY 30, 2019

We’ve all heard how effective subscriptions can be for growing companies. Perhaps one of the biggest benefits of implementing a subscription model is that it allows software companies to avoid the unpredictability of one-time sales by guaranteeing a steady stream of revenue. What is Annual Recurring Revenue?

Finance

User Pilot

MARCH 6, 2023

What’s product-led acquisition? TL;DR Product-led acquisition (PLA) is an organic way of growing a customer base through recommendations from existing customers. It is often used by product-led businesses to drive scalable business growth. What is product-led acquisition? What are its benefits?

Scale

ProfitWell

DECEMBER 4, 2019

The SaaS business model powering all of this activity is startlingly unique, still young, and inextricably tied to the power of cloud computing. SaaS, or software as a service, is a delivery model in which a centrally hosted software is licensed to customers via a subscription plan. What is the SaaS business model.

Business Model

Stax

MARCH 18, 2025

However, a SaaS company providing global HR and payroll solutions may have a few hundred customers paying a monthly or annual feein other words, making recurring payments over a longer period of time. Churn is the percentage of customers that end their subscriptions within a certain amount of time. Customer acquisition cost.

Scale

ProfitWell

NOVEMBER 13, 2019

The trick is identifying a smaller set of metrics that really tell the story of your business and making them your key performance indicators, or KPIs. The good news is that the most important subscription KPIs are constant across SaaS businesses, whether you’re selling a timekeeping software or an accounting tool.

Subscription

FastSpring

JANUARY 21, 2020

Subscriptions are the lifeblood of any SaaS business model. On the surface, it’s a perfect model. However, SaaS subscriptions can also cost businesses money if they’re not set up with the customer’s experience in mind. Why failed payments and involuntary customer churn go hand in hand.

Payments

FastSpring

MAY 30, 2019

We’ve all heard how effective subscriptions can be for growing companies. Perhaps one of the biggest benefits of implementing a subscription model is that it allows software companies to avoid the unpredictability of one-time sales by guaranteeing a steady stream of revenue. What is Annual Recurring Revenue?

Payments

Chart Mogul

APRIL 15, 2021

Keeping your pace of growth while going through an acquisition is difficult. For Kaspars Upmanis, founder of CakeHR and now VP Category Leader at Sage, having a clear understanding of what moves the business forward was the essential piece that allowed his team to deliver sustained growth. Acquisition by Sage. What is Sage HR?

Acquisition

ProfitWell

MARCH 23, 2020

There are a few key metrics that all subscription businesses should be completely on top of. Think of these metrics less as numbers on a screen and more as indicators of business health. Churn is the make or break of your subscription business. Without these, you won’t know how you’re faring. Churn rate.

Subscription

ProfitWell

MARCH 9, 2020

The subscription business model has seen an immense rise in popularity in recent years, and with good reason. The subscription-based economy grew 350% between 2012 and 2019, and subscription businesses grew revenues about five times faster than S&P 500 company revenues during that time. Convenience.

Subscription

Clouded Judgement

SEPTEMBER 6, 2024

To fund significant customer acquisition costs to capture market share. The first assumption is that at the end of the rapid customer acquisition spend you will end up as the monopoly or duopoly leader (with, importantly, pricing power). Net new ARR is simply the ARR of the current quarter, minus the ARR of the previous quarter.

Cloud

The Angel VC

MARCH 13, 2014

That means that in your first month the retention could be less than 100%, if people cancel their paid subscription within that month. Subsequently it will also tell you the highest price you can spend on customer acquisition to grow profitably. So keep in mind to continually track and fine-tune your CLTV calculations.

Customer Lifetime Value