Tom Tunguz

AUGUST 26, 2020

Today, the company is a massively successful SaaS business and another example of the flywheel business model that creates demand at the individual user and leverages that interest to sell department and company-wide contracts. Asana records a contract size advantage of about 44%, with an ACV of $2165. per month on average.

Payment Solutions 363

Payment Solutions Payments Outsourced Development Payment Services 363

FastSpring

JANUARY 9, 2025

How you can pursue these strategies to drive more profitability for your games, while developing a more meaningful relationship with your players. We work with big, wonderful mobile developers like Ninja Kiwi that make games like Bloons Tower Defense, folks like BoomBit, Hutch, and a bunch of other great developers and publishers.

Payments 165

Payments Mobile Payment Methods Revenue 165

SaaStr

DECEMBER 16, 2022

Logo acquisition (i.e., Outsourcing: If the economics don’t make sense by hiring sales reps in your location, consider outsourcing work overseas until the unit economics work out. Develop impactful messaging to tell your product story and embed that into your outbound strategy.

Outsourcing Services 288

Outsourcing Services Scale Sales Hiring Outsourced Development 288

Clouded Judgement

JULY 16, 2024

Our platform’s extensible architecture also enables customers to rapidly adopt and develop new solutions that meet the unique and continually evolving needs of their business. ” How OneStream Makes Money From the S-1: “Our business model centers on maximizing the lifetime value of a customer relationship. months and 23.4

Benchmarks 295

Benchmarks Data Machine Learning Artificial Intelligence 295

SaaStr

MARCH 30, 2023

Having backed more than 115 companies and facilitated over 420 add-on acquisitions, we bring extensive investment experience, deep expertise in software and technology, and a firm commitment to collaborating with management teams. Vertice is a tech-enabled SaaS purchasing platform.

Outsourced Development 277

Outsourced Development Acquisition B2B Technology 277

Tom Tunguz

MAY 5, 2022

Rather than reading these reports, startups ought to perk up their ears to the echoes of budget contraction within their customer bases. Costs of customer acquisition spike. Studies like this one lag patterns especially when market conditions change. Pricing power warning signs take many forms including. slowing sales cycles.

Outsourced Development 302

Outsourced Development Forecasting Startup Acquisition 302

SaaStr

DECEMBER 27, 2020

If New Relic had even 120% NRR, it’s growth rate with the exact same rate of new customer acquisition would be 137% instead. It can be a bit scary to move from fixed contracts. While New Relic cited Covid, perhaps competition is likely as a big a culprit, as we also saw with Slack. This is a big deal in B2D/API companies.

Scale 342

Scale Outsourced Development SMB Cloud 342

Tom Tunguz

JULY 8, 2021

In the language of the land, the protocol is often called a smart contract. Smart contracts are open-source. Each has its own strengths and weaknesses that span attributes like speed, privacy, cost to write transactions, and developer friendliness. Protocols must decide which chain(s) they will support.

Outsourced Development 267

Outsourced Development Marketplace as a Service Banking Construction 267

SaaStr

MARCH 2, 2022

Use it to develop a hypothesis about what will work and turn it into a data-driven program. Every step of the customer acquisition funnel must be measured and studied. You can do this by creating community and developer advocacy teams that enable the community to succeed. Use data to lead the way. Data is essential.

Outsourcing Services 246

Outsourcing Services Scale Outsourced Development Marketing 246

Sales Hacker

APRIL 25, 2019

The SMB Decision: In-House vs. Outsourced Sales Development. Customer acquisition drives revenue, and revenue becomes your means of growth. Without a sales development team, you can find yourself struggling when it comes to pipeline generation. The Four Costs of In-House Sales Development. Software costs.

Outsourcing Services 97

Outsourcing Services Sales Hiring Sales Outsourcing Outsourced Development 97

SaaStr

NOVEMBER 4, 2021

2 drivers stood out as notable: Customer Acquisition Cost (CAC) and Churn. In terms of Customer Acquisition Costs, “Rule of 40” Qualifiers spent 31% less to acquire a new customer. As context, the KBCM 2021 survey data showed customer acquisition cost (CAC) payback periods of 18 to 26 months on a gross margin basis.

SaaS 321

SaaS Technical Review Benchmarks Azure 321

Neil Patel

JUNE 29, 2021

Customer acquisition is a huge pain point for many business owners. Even more difficult is developing a consistent way of bringing in new business. What Is Customer Acquisition? Customer acquisition is your business’s process of bringing in new customers. What Is the Purpose of Customer Acquisition?

Acquisition 132

Acquisition Outsourcing Services Social Media Scale 132

Tom Tunguz

AUGUST 2, 2016

Channel distribution represents one of the biggest and most important changes in customers acquisition for SMB SaaS startups in quite a while. As many of these channel partners move to newer distribution models, the brokerage channel model in particular, they represent an efficient and leveraged customer acquisition channel.

Outsourcing Services 114

Outsourcing Services SMB Acquisition Scale 114

Baremetrics

APRIL 6, 2021

When you’re looking at your business goals, you need to consider not only your existing monthly revenue but your contraction monthly recurring revenue (MRR). Contraction Monthly Recurring Revenue (MRR) is an extremely important metric for subscription businesses. Table of Contents.

Outsourced Development 99

Outsourced Development Payments Revenue Payment Services 99

SaaStr

NOVEMBER 24, 2020

Paddle is a leading revenue delivery platform for SaaS companies that powers rapid growth across acquisition, renewals and expansion – making it easy for companies to scale-up. PandaDoc is trusted by businesses to create, approve, and eSign proposals, quotes and contracts.

Scale 299

Scale Scaling Outsourced Development compliance 299

SaaStr

NOVEMBER 23, 2022

Algolia’s Bernadette Nixon (Chief Executive Officer) and Michelle Adams (Chief Revenue Officer) have spent the past few years developing this relational toolbox. Anybody can post the numbers—the right churns, contraction profiles, or ARRs—but they should also earn these metrics with integrity.

Underperforming Technical Team 318

Underperforming Technical Team Leadership Outsourced Development Finance 318

Tom Tunguz

AUGUST 28, 2021

Many people think of pricing as monetization, but just as important to think through it as an acquisition strategy. If you would like to create switching costs, per seat pricing with annual contracts establishes some lock-in. Michelin developed a much more durable tires. Value/ Usage. Intermittent. Intermittent. Competition.

Pricing 279

Pricing Strategy Startup Scale 279

SaaStr

FEBRUARY 7, 2024

In today’s world, there’s a clear shift in what founders, boards, and investors are all after — scalable, low-CAC (customer-acquisition cost) growth strategies. The data above shows it’s a customer acquisition cost on average of $1.05 How to use community as a driver of product-led growth. vs. $1.80, which is a big difference.

Scale 279

Scale Sales Hiring Strategy Marketing 279

SaaStr

NOVEMBER 24, 2021

Says Roberge, “We’re using a sales comp plan that was invented in the 1980s, and it’s causing our customers to utilize their licenses at a lower rate, and it’s causing revenue contraction.”. It includes leadership development courses, and responsibilities of managing and hiring one or two reps to get experience. .

Sales Hiring 260

Sales Hiring Scale Compensation Sales 260

Stax

APRIL 15, 2025

You can calculate it using this formula: (New MRR + Expansion MRR + Reactivation MRR) (Churn MRR + Contraction MRR) Now, if you had $5,000 of new MRR, $500 in upgrades, and $400 in reactivations, but you had a churn of $1,000 and $500 in downgrades, your net new MRR would be $4,400. MRR can measure performance of various customer segments.

Payments 88

Payments SaaS Payments Revenue Payment Services 88

SaaStr

FEBRUARY 26, 2019

Join Qualtrics Co-Founder and CEO alongside SaaStr Founder and CEO Jason Lemkin as Ryan reflects on the survey software maker’s acquisition by SAP this year. We wanted to automate research that was being outsourced and then we wanted to take it to the world. What we do is we help companies close the experience gap.

Acquisition 161

Acquisition Sales Recruiting Scale Sales Hiring 161

Incredo

JULY 8, 2019

The team of software engineers and testers is the main asset of any SaaS company – they develop, test and improve the product so the company can attract more and more interested users. For an established SaaS company expanding on social networks or developing effective customer retention programs may be among the primary goals.

Outsourcing Services 200

Outsourcing Services Scale Outsourced Development Sales Hiring 200

User Pilot

AUGUST 30, 2023

With many customer acquisition channels available, how do you choose the right one? Read on to find the best acquisition channels for your SaaS and how to create winning customer acquisition strategies that drive growth. TL;DR Customer acquisition is the process of attracting and converting new customers into paying customers.

Acquisition 105

Acquisition Strategy Social Media Customer Lifetime Value 105

Aaron Beashel

MARCH 9, 2018

MailChimp (Touchless acquisition) – MailChimp is an email marketing tool that uses a touchless acquisition model to acquire customers. They target professional marketers at medium-sized companies and sell their product for an average of $300 per month ($3,600 Annual Contract Value). Who is the target market for your product?

Scale 192

Scale SaaS Payments B2B Strategy 192

Baremetrics

NOVEMBER 2, 2021

Shopify is a huge opportunity for developers looking to expand into the micro-SaaS space. The Shopify App Store brings together Shopify app developers and Shopify shop owners for their mutual benefit. Why you need to track business metrics for Shopify App Developers 10 business metrics for Shopify App Developers 1.

Outsourced Development 98

Outsourced Development Payment Solutions Underperforming Technical Team Metrics 98

The Angel VC

MARCH 23, 2016

Therefore the key drivers of my imaginary startup are organic growth rate, marketing budget and customer acquisition costs, conversion rate, ARPU and churn rate. It's worth pointing out that the model currently doesn't show "Expansion MRR" and "Contraction MRR" separately but only the delta of the two, which I've called "Net Expansion MRR".

SaaS Payments 217

SaaS Payments Headcount SaaS Payment Methods 217

SaaStr

AUGUST 2, 2019

Then, I joined a start-up that had just raised $50m+ and had $30m+ in customer contracts. And it turned out, all the customer contracts were just drafts. So my co-founder and I grabbed and licensed some technology they had developed and put on the shelf. Announces Acquisition of NanoGram Devices Corporation.

Outsourced Development 166

Outsourced Development Acquisition Technology Revenue 166

Practical Advice on SaaS marketing

NOVEMBER 8, 2014

in annual contract revenue. on sales and marketing to win a customer that would be worth $1 in annual contract value. To grow a SaaS business to $100 million in annual contract value, I need to spend $107 million to acquire customers!!” It costs money to design an effective customer acquisition plan. Still not too shabby.

Outsourced Development 133

Outsourced Development Social Media Acquisition Business Model 133

The Angel VC

APRIL 30, 2015

That is, a chart that shows your new MRR, expansion MRR, contraction MRR, churn MRR and reactivation MRR for each month since launch. 3) A cohort analysis , showing each monthly customer cohort since launch and how the cohort’s MRR has developed over time. 5) An overview of your customer acquisition channels. What do you think?

Software Review 186

Software Review Outsourced Development SMB Acquisition 186

SaaStr

APRIL 30, 2022

Customer Acquisition Cost (CAC). & The second constituent there is the developer. Why do developers love SaaS products? Customer acquisition. Customer acquisition is basically how much do you spend in terms of sales people, sales team, and in terms of marketing to acquire a new customer. & a few others.

SaaS Payments 246

SaaS Payments Metrics Payment Methods Scale 246

FastSpring

MARCH 3, 2023

When you’re using a DIY payment solution like Stripe, making it work for your business falls on your developers. What if, instead of spending so much time making your payment stack work for you, your developers could focus on your product? And this leads to our third point.

Merchant Services 148

Merchant Services Outsourcing Services Payment Services SaaS Payments 148

CustomerSuccessBox

SEPTEMBER 15, 2021

You have two options- in-house customer success or outsourcing customer success. With customer success being a new function and companies not prepared for it, outsourcing might seem like a wise decision. Customer success increases customer predictability by giving you insight into developing issues. Customer Acquisition.

Outsourcing Services 52

Outsourcing Services Outsourced Development Customer Success B2B 52

Chaotic Flow

AUGUST 18, 2015

SaaS businesses develop intimate, long term relationships with their SaaS customers. If they don’t keep their customers around for years, then all that capital invested in customer acquisition will have gone to waste. It is typical in B2B software for customer acquisition to eat up 50% or more of total costs.

Customer Success 138

Customer Success Underperforming Technical Team Scale SaaS 138

Tom Tunguz

MARCH 26, 2016

Often, sales teams use the word sales velocity to refer to the number of signed contracts in a given month or quarter. The sales development representatives tackle lead qualification, enabling this account executives to focus exclusively on minimizing the sales cycle and maximizing the win rate. Let’s walk through each variable.

Government 128

Government Scale Outsourced Development Venture Capital 128

Intercom, Inc.

JULY 18, 2019

So what’s the key to having happy developers? A joyful, transparent development experience. As we keep building out our own platform so teams can customize Intercom for their own needs, we’ve loved getting to know the great group of developers and partners building apps for our customers and for themselves.

Outsourced Development 110

Outsourced Development Development Innovation DevOps as a Service 110

Sales Hacker

OCTOBER 7, 2019

Is account-based sales development right for your business? We’ve put together a flowchart that tells you in no uncertain terms whether it’s a good model for your organization, plus 5 factors that can make or break your account-based sales development initiatives. Account-based sales development isn’t for everyone. Infographic).

Outsourced Development 82

Outsourced Development Sales Hiring Development Sales 82

SaaStr

APRIL 2, 2023

Later on, when we thought a new acquisition of raw technology was ready to scale (it wasn’t – it is now) In 2022 (like many companies), when we misread the “COVID bump” of 2021 for a secular change in software In each case, the mistake wasn’t being aggressive. Eventually, you end up with 2000 contract types for 1000 customers.

Sales Hiring 331

Sales Hiring Scale Customer Success Scaling 331