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

SaaStr

Some of the changes we’ve seen in the last year or two include: CAC reduction Headcount optimization Price complexity Quality of revenue A different environment means a different strategy, and Notion Capital lays out four business model changes that could be helpful based on what peers are doing. You don’t want to be there.

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

Clouded Judgement

And once a customer has paid back the initial acquisitions costs to acquire it, all future streams of revenue can loosely be described as a cash flow annuity. Headcount planning, budgeting, fundraising, etc can often be largely based on a top line plan. Do you have ARR or ERR?

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SaaS customer acquisition: Feed it or starve it?

Practical Advice on SaaS marketing

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.

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SaaS Financial Plan 2.0

The Angel VC

Therefore the key drivers of my imaginary startup are organic growth rate, marketing budget and customer acquisition costs, conversion rate, ARPU and churn rate. If you have a SaaS startup with a higher-touch sales model where revenue growth is largely driven by sales headcount, the plan needs to be modified accordingly.

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Why SaaS Companies Are Embracing Owned Media and How to Make it Work for You

Sales Hacker

Here are a few benefit sticking points: Owned media can be measured by subscriptions. Platforms like Substack and Patreon allow consumers to connect and support creators through subscriptions. With subscriptions, SaaS companies are able to organically build a targeted email list.

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A New Way To Tell if a Company Is Truly Product-Led

OpenView Labs

(This new way of thinking about R&D spend also requires companies to rethink the relevance of classic SaaS metrics like CAC payback, which only consider Sales and Marketing costs as part of customer acquisition.). PLG is more of an acquisition channel than a company-wide strategy. Atlassian has an R&D:S&M ratio of 2.9:1.

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How to Present an Operating Plan to your Board

Kellblog

(In a small initial land and big expand model, this may run much higher than 30-40% but that also depends on the definition of land – i.e., is the “land” just the first order or the total value of subscriptions acquired in the first 6 or 12 months). The next block focuses on headcount: Total employees, at end of period.