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SaaS Is Growing Up: 4 Business Model Changes To Adopt with Notion Capital

SaaStr

Many of the fundamental business models that were once engraved in the SaaS playbook are now changing thanks to a tougher macro environment and a maturing market. PST, Stephanie Opdam, Partner at Notion Capital, shares four business model changes that will allow SaaS companies to build resilience and staying power over time.

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The Evolution of Open Source Business Models

Tom Tunguz

Fast forward to today : open source has become a go-to market strategy for many software startups because it presents a powerful antidote to monotonically increasing acquisition costs. Revenue is concentrated in the top accounts & future growth lies in those enterprises, too.

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Startup Metrics

TechEmpower SaaS

What does the business do? One way to approach that last question is to use this simple model: Customer Acquisition Cost (CAC) How will your business reach prospects? Customer Lifetime Value (CLV) How much money will your business generate from each converted customer? How does it meet customers’ needs?

Metrics 390
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Clouded Judgement 3.22.24 - ERR vs ARR and the Conundrum of AI Revenue Streams Today

Clouded Judgement

Subscribe now ARR (Annual Recurring Revenue) vs ERR (Experimental Runrate Revenue) ARR (Annual Recurring Revenue) is one of the most popular SaaS (Non-GAAP) metrics. In it's truest form, ARR is used by pure SaaS business models to describe the aggregate annual value of the entire customer set.

AI 183
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The State of Startup Marketing in 2024 with CMOs of HubSpot and Zapier

SaaStr

The current business model for software companies involves spending a significant portion of revenue on sales, regardless of available tools and automation. Marketers should focus on the acquisition channels they’re best at, even if it’s not the perfect fit for the situation.

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Customer Retention vs Acquisition Cost: Which One Should You Focus?

User Pilot

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.

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How I Reverse-Engineered a $100M Exit with SaaStr Founder and CEO Jason Lemkin

SaaStr

EchoSign, which Adobe bought, had $12M in ARR, growing 100%, with 120% revenue retention and cash flow positive. Today that would be a dream, but in 2011, people didn’t understand the metrics around recurring revenue businesses, so investors weren’t sure it was a good business. For some businesses, this doesn’t work.