Remove AWS Remove Churn Remove Customer Success Remove Headcount
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The Hardest Part About SaaS Companies, At Each Stage

SaaStr

Yes, you now know how to make customers successful and happy now. You have 2,000 customers now. Enough to pay some salaries and AWS bills, but it’s not that much. And human churn. You start making up for it in volume — with headcount. From $100k-$1m in ARR, the hardest part is how slow it is.

SaaS 348
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Dear SaaStr: What is the Hardest Part About Starting a SaaS Company?

SaaStr

Yes, you now know how to make customers successful and happy now. You have 2,000 customers now. Enough to pay some salaries and AWS bills, but it’s not that much. And human churn. You start making up for it in volume — with headcount. From $100k-$1m in ARR, the hardest part is how slow it is.

Headcount 226
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4 Traits of Fast-growing SaaS Companies

OpenView Labs

Usage-based pricing (UBP) , also known as consumption-based pricing, allows customers to pay for products according to how much they use. AWS and other infrastructure providers have been using UBP for nearly a decade. Fast growers retain and expand new customers, resulting in net negative churn.

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It’s a Rough Time to Be a Startup – Here’s What You Can Do About It

OpenView Labs

That’s certainly true in developer tooling (AWS), sales and support (Salesforce), MarTech (Adobe), commerce (Square), HR tech (Workday) and even vertical markets (Veeva). Competition not only increases CAC, but it simultaneously decreases customer lifetime value (ouch!). Now it’s table stakes.

Scale 70
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It’s a Rough Time to Be a Startup – Here’s What You Can Do About It

OpenView Labs

That’s certainly true in developer tooling (AWS), sales and support (Salesforce), MarTech (Adobe), commerce (Square), HR tech (Workday) and even vertical markets (Veeva). Competition not only increases CAC, but it simultaneously decreases customer lifetime value (ouch!). Now it’s table stakes.

Scale 51
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It’s a Rough Time to Be a Startup – Here’s What You Can Do About It

OpenView Labs

That’s certainly true in developer tooling (AWS), sales and support (Salesforce), MarTech (Adobe), commerce (Square), HR tech (Workday) and even vertical markets (Veeva). Competition not only increases CAC, but it simultaneously decreases customer lifetime value (ouch!). Now it’s table stakes.

Scale 40