OpenView Labs

JUNE 16, 2021

As a follow-up to The Usage-Based Pricing Playbook , this article hits on why pure usage-based pricing isn’t for every product, and how not all expansion revenue is created equally. Launching a Consumption-Based Pricing Model: What, Why, and How? The Rise of Usage-Based Revenue. Flexible Consumption Business Models.

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Pricing Scale Forecasting AWS 64

The Angel VC

FEBRUARY 20, 2016

In it he argues that an eCommerce business with $10 to $20 million in revenues is not that hard to build and also not very valuable. So if you start an online shop, offer products at a loss, get listed on some of the biggest comparison shopping sites and do some affiliate marketing, you can easily get to tens of millions in revenue.

Scale 192

Scale Scaling SaaS AWS 192

Tom Tunguz

AUGUST 3, 2014

The chart above shows the relationship between beating earnings and Enterprise Value to Trailing-Twelve Month Revenue Multiple (EV/TTM Rev). After the correction of about 40% enterprise companies and of 25% in consumer names , the median enterprise revenue multiple has popped back up 7.4x and consumer has increased similarly to 7.0x.

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Startup Trends AWS Marketing 100

OpenView Labs

JANUARY 29, 2020

Product led businesses need to get their products in the hands of would-be users as efficiently as possible–hopefully at near zero CAC. Not satisfied with reaching $1 billion in annual revenue, Atlassian furthered its commitment to product led growth by jumping on the freemium bandwagon. Stories of ditching a freemium model.

Pricing 82

Pricing Payments SaaS Payments Payment Solutions 82

Blulogix

NOVEMBER 8, 2023

Here are some notable examples: Cloud Computing Major cloud providers like AWS, Azure, and Google Cloud offer pay-as-you-go pricing, enabling businesses to access computing resources based on their actual usage. This approach has transformed the way companies manage their IT infrastructure.

Technology 52

Technology Pricing Payment Features Subscription 52

ChurnZero

JUNE 24, 2022

Q: We have a revenue model that has both seat license and usage-based items. Should you calculate NRR based on these individual revenue models or the combined total? I mean AWS or whatever might be going up too. But especially if the business model and the pricing model are the same.

Benchmarks 98

Benchmarks Retention Software Review Technical Review 98

Frontegg

MAY 27, 2021

This philosophy applies to both low and high touch business models, where the vendor has to eliminate all potential usability problems that may arise. Instead you should focus on Natural Rate of Growth (NRG) to determine the percentage of recurring organic revenue. This metric is a strong future revenue indicator.

Payment Solutions 98

Payment Solutions SaaS Payments Payments Scale 98

SaaStr

OCTOBER 31, 2019

It was around that time about 12 years ago that Jeff Bezos launched AWS, and some of you may remember that, when he did this, Wall Street analysts were looking at him and saying, “Why would you take what’s already a very unprofitable business and drive it further into the red by investing in this AWS initiative?”

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Cloud Scale AWS Machine Learning 100

OPEXEngine

JUNE 11, 2020

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. Cost of Revenues, are different.

SaaS Payments 52

SaaS Payments Payment Solutions Subscription Payment Features 52

SaaStr

AUGUST 8, 2023

In a fascinating workshop session, Miao shares his thoughts on how finance teams can contribute to company strategy and grow revenue. Basics: The Building Blocks of the Finance Team To understand how finance teams impact an organization, it’s helpful to break down various functions and how they support the business. Sign up for free.

Scale 169

Scale Finance Outsourcing Services Sales Recruiting 169

ProfitWell

SEPTEMBER 10, 2020

By almost all key metrics, now is a great time to get into the SaaS business model. SaaS revenue is expected to reach $143.7 As such, many SaaS businesses are opting for the latter. In the early days of a business, MRR (monthly recurring revenue) is all you will have to work with. billion by 2022.

SaaS Payments 66

SaaS Payments Trends Merchant Services Payments 66

ChurnZero

JUNE 24, 2022

Q: We have a revenue model that has both seat license and usage-based items. Should you calculate NRR based on these individual revenue models or the combined total? I mean AWS or whatever might be going up too. But especially if the business model and the pricing model are the same.

Benchmarks 52

Benchmarks Retention Software Review Technical Review 52

Neil Patel

SEPTEMBER 3, 2020

The ultimate goal for each of these is revenue; each of the examples above would be considered a lead. It shows prospective clients that: Your agency has enough clients to meet Google’s spend requirements Active clients are achieving revenue growth, and you’re delivering on your promises Your agency is growing (i.e.,

Outsourcing Services 131

Outsourcing Services Advertising Transportation Customer Lifetime Value 131

OpenView Labs

FEBRUARY 11, 2021

Now, for each segment, isolate its revenue and COGS. If revenue hides all sins, gross margin reveals them via segmentation. “If revenue hides all sins, gross margin reveals them via segmentation. While inevitable and with multivariate causality, it speaks to the product’s maturity and business model.

Scale 52

Scale Payment Methods Payment Services Systems Review 52

ProfitWell

MAY 12, 2020

SaaS ensures that consumers are always up to date with the latest version, while also ensuring that developers have a continuing source of revenue with which to maintain their product. AWS — Amazon Web Services is perhaps the most used of the cloud infrastructure options. What is PaaS?

Cloud 59

Cloud Azure SaaS Underperforming Technical Team 59

Chargify

AUGUST 17, 2020

However, with the introduction of Events-Based Billing by Chargify, this event-based billing model is now available to small and medium-sized businesses, giving them the ability to offer the same pricing models and bill customers just as precisely as Amazon Web Services (AWS) or the popular voice and messaging platform Twilio.

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AWS Payment Services SaaS Payments Payments 98

Intercom, Inc.

DECEMBER 13, 2018

As Workplace’s global head, Julien Codorniou has been spending the past few years exploring how to make his department align with Facebook’s mission while executing an entirely different business model that relies on companies promoting community within their workforce. I highly recommend Predictable Revenue from Aaron Ross.

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Scale Marketplace as a Service Mobile Sales Hiring 151

SaaStr

DECEMBER 13, 2021

We weren’t focused on revenue, we were focused on winning developers one-by-one, and that was the key to success for us. For us, the SaaS model Amazon Web Services (AWS) offered was an amazing one to look at. For the first twenty employees, we were working on developer relationships.

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AI Enterprise SaaS AWS 233

SaaStr

AUGUST 10, 2023

They had open cores and created enterprise features around it to protect the business model until it got torpedoed by AWS early on. Now, it’s a revenue function, and to have a healthy, high-performing revenue function, you need a very precisely defined segmentation. That would have been counterproductive.

Scale 179

Scale Scaling Sales Hiring Cloud 179

SaaStr

JULY 20, 2021

It’s probably that you’re small, you have very little revenue, you have a couple of employees maybe, you’re probably struggling, maybe your bank accounts are stretched, you’re probably incredibly stressed. It’s a brutal, awful slog in the start. That’s actually not their business model at all.

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Underperforming Technical Team Sales Hiring AWS Business Model 240

SaaStr

APRIL 30, 2022

Or maybe ARR, depending on your model. Average Revenue per Customer. 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. The last kind of constituent here is investors and business owners. MRR, obviously.

SaaS Payments 231

SaaS Payments Metrics Payment Methods Scale 231

ProfitWell

SEPTEMBER 25, 2019

One of the most famous lines from Citizen Kane is, “It's no trick to make an awful lot of money, if that's all you want is to do is make a lot of money.” That’s never been truer for software businesses in particular than in the past 10-15 years, with the internet stimulating an explosion in the number of viable revenue models.

Payments 40

Payments Revenue Payment Methods SaaS Payments 40

SaaStr

APRIL 24, 2020

As for John, prior to Domo he served as vice president for strategy and business operations for Adobe’s Digital Experience business, driving more than $3 billion in annual revenue. John Mellor: And that year, when I joined in 2003, Omniture did $8 million in revenue. billion in annual revenue. And the stock popped.

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Scale Leadership Strategy Technology 220

Chargify

FEBRUARY 1, 2018

Over the last decade, recurring revenue has emerged as the preferred model for businesses moving beyond transactional commerce. While the first generation of recurring revenue was defined by simple subscriptions—think Netflix’s original “one-size-fits-all” $7.99 with numerous upsell and cross-sell opportunities.

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Subscription Payment Features AWS Scale 75

Intercom, Inc.

JANUARY 24, 2019

It’s less expensive than it’s ever been in terms of actually getting a product to market, whether it’s leveraging platforms like Salesforce or GCP or AWS or Heroku. Obviously we’ve seen a lot of changes in terms of tech and business models, but what would you say has stayed the same in that space?

Scale 151

Scale Machine Learning Artificial Intelligence AI 151

Outseta

JANUARY 20, 2020

In this post I’m going to share the most important lessons about growing a SaaS business that I learned at Buildium—collectively, these things had an awful lot to do with the company being valued so highly. More than anything, I’d fallen in love with the challenge of building a business and helping it grow into its potential.

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SaaS Payments Sales Hiring Payment Methods Payment Services 145

OpenView Labs

DECEMBER 15, 2020

Cloud marketplaces like AWS Marketplace, Azure Marketplace and Google Cloud Platform Marketplace are digital storefronts where companies can list their offerings for software buyers to find, purchase and provision software. . Marketplaces will enable creative and flexible new business models.

Marketplace as a Service 52

Marketplace as a Service Cloud Scale B2B 52

ProfitWell

NOVEMBER 5, 2019

Yes, they might kick the can down the road a little longer, but they only delay the inevitable while giving customers an awful experience in the meantime. The key feature separating subscription businesses from their more standard counterparts is the recurring nature of payments. Avoid delinquent churn and recapture lost revenue.

Payment Features 49

Payment Features Subscription Payment Methods Merchant Services 49

Mucker Capital

APRIL 6, 2023

Are there types of companies, market segments, industries, or business models where PLG does not make sense? If you have a very complicated product–for example you sell AWS or you sell Snowflake–those are infrastructure products. You still have a revenue goal to hit this quarter, something like that. Who should own PLG?

Startup 52

Startup Scale CTO Hire Outsourced Development 52

Chart Mogul

OCTOBER 18, 2019

This is already at play — services like AWS, Stripe, and others have brought down the cost of starting and running a business to a fraction of what they used to be just a decade ago. Consumerizing even more parts of the activities of a typical business (logistics-as-a-service, etc.) doubling the number of leads).

Scale 71

Scale SaaS Automotive AWS 71

Chart Mogul

OCTOBER 18, 2019

This is already at play — services like AWS, Stripe, and others have brought down the cost of starting and running a business to a fraction of what they used to be just a decade ago. Consumerizing even more parts of the activities of a typical business (logistics-as-a-service, etc.) doubling the number of leads).

Scale 52

Scale SaaS Automotive AWS 52

Hacking Revenue

FEBRUARY 26, 2016

While these services significantly lowered the costs of starting a new business, I believe that the people who said that sentence were missing the point of starting a business – to build an always growing, sustainable brand. It is also what sets you up for long term business model and success.

Outsourcing Services 53

Outsourcing Services Branding Outsourced Development Scale 53

OpenView Labs

MAY 5, 2021

It produces a challenging messaging strategy because if your primary business model is selling support on an open-source project, you’re kind of incentivizing your team to build shitty software, and nobody ends up happy. A lot of your top-of-funnel is focused on converting open-source users to paying customers.

Business 52

Business SMB Scale DevOps as a Service 52

OpenView Labs

JUNE 25, 2019

As an important aside, it’s worth noting that product led growth (PLG) companies have a shorter CAC payback than companies with a traditional sales & marketing driven go-to-market model. For SaaS businesses, hosting (AWS) costs and customer onboarding are the key costs of goods sold and are constantly being optimized.

Scale 40

Scale Development Team Review Software Review Benchmarks 40

SaaStr

AUGUST 22, 2020

Aaron Levie: I think what’s happening is, is companies are realizing that the really big sort of flip the business model on its head project and we’re going to go and do a distributed ledger technology and all this, that’s going to have to get punted because we’re in core survival mode right now.

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Sales Recruiting Cloud CTO Hire Scale 150

SaaStr

AUGUST 20, 2019

Since Sameer joined SendGrid at CEO in 2014, the company has quadrupled its revenue, more than doubled its employees, experienced a successful initial public offering and was recently acquired by Twilio in a transaction valued at approximately $2 billion. But the growth rate was slowing. We could take the company public.”

Scale 139

Scale Acquisition Scaling Sales Hiring 139

OpenView Labs

JUNE 4, 2019

revenue of the largest integrated steelmakers.” Both disruptions radically redefined content platforms, business models, and customer habits. These models used vacuum tubes and offered excellent sound quality, but they were inefficient, clunky, and expensive. Video streaming. Smartphones. Retail medical clinics.

Innovation 71

Innovation Technical Review Travel Business Model 71