Andreessen Horowitz

APRIL 23, 2024

Alex: Let’s dive into your business models. One of the holy grails of SMB software is, how are you going to acquire customers? One of the criticisms of SMB software is that each customer can only provide so much revenue. For both of you, subscription is a smaller-to-no piece of the story.

Payments 96

Payments Forecasting Payment Services Payment Solutions 96

Casey Accidental

OCTOBER 27, 2020

This is part three of a three part series on sequencing business models. In part two of our Sequencing Business Models series , we talked about the different types of marketplaces and what needs to be built to be effective in each of them. This post is a collaboration with Gilad Horev. The Types of Platforms.

Payments 56

Payments Business Model Payment Solutions SaaS Payments 56

OPEXEngine

JUNE 11, 2020

You hear the terms SaaS, subscription, term licenses and perpetual license software tossed around frequently. 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.

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SaaS Payments Payment Solutions Subscription Payment Features 52

Casey Accidental

OCTOBER 20, 2020

This is part two of a three part series on sequencing business models. Casey’s first sequencing business models essay talked about the transition from a SaaS business model to marketplace business model, and why it’s so difficult. This essay is a collaboration with Gilad Horev.

Marketplace as a Service 52

Marketplace as a Service Business Model SaaS Payments Payments 52

Andreessen Horowitz

OCTOBER 12, 2023

In Part A , we outlined the paths to generating unique value for the healthcare system and patients. For instance, perhaps you position your product as a best-of-breed solution that can be deployed against a specific use case with a faster implementation and time-to-ROI than others.

Healthcare 99

Healthcare AI Payments Enterprise 99

Andreessen Horowitz

DECEMBER 12, 2023

In this episode, a16z partner Seema Amble talks with Dimitri Dadiomov, the co-founder and CEO of payment operations platform Modern Treasury, about the challenges of creating a new category, hiring for marketing before you hire for sales, and why developing new features is similar to birding. And that was the origin story.

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Payment Solutions Payment Methods Payment Services Payments 100

Baremetrics

DECEMBER 28, 2020

If you’re running a subscription or SaaS business, you know that at the end of the day your chief metric is monthly recurring revenue (MRR). MRR gives your company that forward looking measurement and predictive revenue to actually grow your business. Your team follows up and payment is recovered. Think about that.

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SaaS Payments Payment Services Payment Solutions Payments 105

FastSpring

SEPTEMBER 17, 2019

Subscription-based businesses are awesome! All you have to do is get a customer to buy once, and then you get recurring revenue without even thinking about it. While the recurring revenue part is true and awesome, retaining customers and creating a sustainable subscription-based business model can be super tricky.

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Subscription Payment Features SaaS Payments Payment Services 62

Baremetrics

SEPTEMBER 5, 2021

Without a proper way of filtering leads to find the ones who have the most relevant need for a product or service, marketing teams would spend a lot of time and money gathering thousands of leads with only a fraction converting on business goals. It simply starts with the definition of quality. What is a SQL? Try Baremetrics Free.

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Payment Solutions SaaS Payments Payment Services Payment Methods 95

Natalia Luneva

JANUARY 13, 2021

However, the subscription business model can’t survive if you keep on acquiring new custo mers but the old ones keep on walking away. The period refers to a month or year depending on which payment option you offer or which of them is more popular. How to calculate this metric and what’s the average SaaS churn rate?

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SaaS Payments Payment Methods Churn Payment Services 105

FastSpring

MAY 5, 2020

Appy is a Software as a Service (SaaS) that creates web applications out of Excel spreadsheets. A few years ago we started with a business model relying on selling license keys of our software. In February we shifted to a subscription model with three plans each on a monthly or yearly billing cycle.

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Payment Methods Payments Payment Solutions PayPal 81

ChurnZero

JANUARY 18, 2024

The role of the chief customer officer has become an essential function in subscription-based business models such as software-as-a-service (SaaS), where customer retention is paramount and requires executive-level leadership. SaaS businesses, meanwhile, benefit from predictable streams of recurring revenue.

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Development Team Review Technical Review Software Review Sales Hiring 52

OPEXEngine

MAY 18, 2021

ARR is an essential subscription metric that identifies the recurring revenue expected on an annual basis from the subscriber base. When calculating this metric, it is important to only use contracted recurring revenue and not one-time payments from services or any other one-time payment. . Usage Fee-Based ARR.

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SaaS Payments Metrics Payments Payment Services 98

ProfitWell

DECEMBER 9, 2019

From the rise of SaaS to the sudden glut of subscription boxes, the subscription business model has never been more popular. So much so that Gartner research predicts that in 2020, all new entrants to the software market and 80% of existing companies will offer some sort of subscription package.

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SaaS Payments Payment Services Subscription Payment Features 61

SaaStr

NOVEMBER 2, 2019

Hear about the early days of Glassdoor; tactical lessons on scaling—from building a business model and recruiting an all-star management team to advice on building a compelling, innovative company culture; and learn whyGlassdoor’s $1.2 Krish Subramanian: We are software engineers by training.

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Scale SaaS Payments Sales Recruiting Payment Services 125

OPEXEngine

FEBRUARY 22, 2022

There are many ways to classify SaaS companies, but differentiating companies based upon who their customers are presents the best approach for measuring performance and driving success for SaaS businesses. Some SMM companies may use all four depending upon the business model. Direct Sales. eCommerce Marketplaces.

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SaaS Payments Payment Services Payment Methods Marketplace as a Service 52

Baremetrics

APRIL 1, 2021

Managing performance metrics is crucial for SaaS and subscription businesses. For millions of subscription companies, Stripe has become the go-to tool for managing payments and subscribers. Stripe: A Powerhouse for SaaS Payments and Pricing At a glance, the Stripe dashboard answers loud and clear “How am I getting paid?”

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SaaS Payments Payments Payment Services Metrics 59

Baremetrics

OCTOBER 22, 2020

Let’s kick things off with a quick definition. Usage-based pricing is a SaaS pricing model where cost is based on consumption, charging customers on a “per-use” basis. Beyond customization, this structure highlights how usage-based pricing can help users plan and price out exactly what they need prior to payment.

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SaaS Payments Pricing Scale Payment Services 80

Casey Accidental

FEBRUARY 20, 2018

I’ve come to realize this saying describes an optimal strategy for a lot more than just an ad-supported revenue model. It should actually be the guiding light for most subscription software businesses. Capture Value For The Business After Value Has Been Created For The Customer. Ask for credit card upfront!

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Payments Revenue VP of Engineering Payment Methods 70

Neil Patel

APRIL 9, 2021

The other big difference is VOD can’t be live content, while OTT can, as VOD by definition can’t have a set schedule involved. This method is best suited to subscription-based businesses. For example, fitness coaches can use VOD platforms to offer monthly subscriptions for on-demand fitness classes.

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Payments Payment Methods Advertising Payment Services 104

Chargify

APRIL 23, 2019

There are specific stages a software-as-a-service (SaaS) company moves through during its life cycle. You may also hear this stage referred to as discovery , vision/mission , or problem/solution fit. and ‘Does my proposed solution solve it effectively?’ Are we still a startup? I don’t think so. Let’s get started.

Scale 74

Scale SaaS Payments Scaling Payment Services 74

ProfitWell

JULY 8, 2020

For tax purposes, software companies can fall into one of three categories according to U.S. These categories are also used by some states, so properly placing your business into one (or more) of the categories is the first step to determining the taxability of your business with regard to sales tax.

SaaS Payments 52

SaaS Payments Payment Services Payment Methods SaaS 52

SmartKarrot

JUNE 1, 2020

As the term goes, the subscription economy deals with the business of rendering subscriptions to the customers. All SaaS companies, including Netflix, Hotstar, or Spotify’s entire range of businesses rely on a subscription model. Subscription Economy Index and its Usage.

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Subscription Payment Features Payment Methods SaaS Payments 10

SaaStr

AUGUST 9, 2019

To date they have raised over $113m in financing from some of the best in the business including Tiger Global, Battery Ventures, Boldstart, Canaan, Cisco, and Redpoint, just to name a few. Eyal and Megan host a fireside chat between Google Cloud and Zenoss, a leader in software-defined IT operations. Missed the session?

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SaaS Payments Cloud Technical Review Scale 128

Baremetrics

MAY 7, 2019

Dictionaries and founders alike can’t agree on the definition of what it means to bootstrap a business. The best representation of what bootstrapping means today is starting and growing a business with minimal resources. Bootstrapping purists insist on only using revenue from customers to fund the business.

Finance 111

Finance Startup SaaS Payments Payment Methods 111

User Pilot

AUGUST 31, 2023

New customers bring in subscription fees, licensing charges, or usage-based payments, which are the lifeblood of SaaS businesses. Consideration Potential customers have identified their problems and are actively researching various solutions. Book a demo now to learn more. What is customer acquisition?

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Acquisition SaaS Payments Payment Methods Metrics 110

Practical Advice on SaaS marketing

JULY 27, 2010

or for software-as-a-service (SaaS) providers. In case you doubt this, peak into the over-heated debates about the precise definition of SaaS that erupt every few weeks on discussion boards. Under the SaaS business model, the costs of acquiring a customer are paid up-front, while the revenue comes in over the life of the subscription.

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SaaS Payments Payment Methods Payments Payment Solutions 100

ProfitWell

NOVEMBER 5, 2019

An automatic subscription renewal charge for a subscription you’re no longer using or that you don't even remember signing up for. Even worse, you go to cancel your subscription, only to discover it's nearly impossible. What is a subscription renewal? Shipping the product to customers (for ecommerce subscriptions).

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Payment Features Subscription Payment Methods Merchant Services 49

SaaStr

NOVEMBER 7, 2019

For me, one definition I like is the one from Bill Gates when he said, “the platform is when the economic value of everybody that uses it exceeds the value of the company that creates it” That’s what a platform according to Bill Gates. What would be your definition? Right, Renaud? What do you have in mind?

Payments 120

Payments Merchant Services Payment Solutions Payment Services 120

FastSpring

MAY 30, 2019

We’ve all heard how effective subscriptions can be for growing companies. Perhaps one of the biggest benefits of implementing a subscription model is that it allows software companies to avoid the unpredictability of one-time sales by guaranteeing a steady stream of revenue. What is Annual Recurring Revenue?

Finance 67

Finance Subscription Payment Features Payments 67

Baremetrics

SEPTEMBER 10, 2021

Before we look at the promised SaaS revenue models, let’s get a couple definitions out of the way. We need to differentiate among three similar sounding but very different concepts: revenue stream, revenue model, and business model. For example, a SaaS company might have a subscription revenue stream.

Payments 102

Payments SaaS Payments Revenue Payment Solutions 102

FastSpring

MAY 30, 2019

We’ve all heard how effective subscriptions can be for growing companies. Perhaps one of the biggest benefits of implementing a subscription model is that it allows software companies to avoid the unpredictability of one-time sales by guaranteeing a steady stream of revenue. What is Annual Recurring Revenue?

Payments 62

Payments Finance Subscription Payment Features 62

Outseta

SEPTEMBER 11, 2017

Even further up market and in my past engagements with Working Planet, there are a number of challenges related to paid search management that I’ve felt first hand and still don’t see a great solution to. After graduate school we worked at separate start-ups and definitely caught the start-up bug.

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Interviewing SaaS Payments Payments Technical Advisors 40

SmartKarrot

NOVEMBER 24, 2020

Before we jump into the definition of a free trial in a second, it is wiser to surface the freemium plan in detail. When the limit exceeds, payment is required to proceed with the usage. But in order to gain access to all of its nifty features, you will have to go for a paid subscription. Structure of a Freemium Plan.

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SaaS Payments Payment Services Business SaaS 10

Neil Patel

OCTOBER 29, 2020

If you’re interested in running an ecommerce site that follows this business model, you need to make sure that your site builder supports dropshipping. While not every website builder will come with dropshipping functionality out of the box, the best ones will seamlessly integrate with dropshipping software and third-party tools.

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Payment Methods Payment Services Payment Solutions Payments 99

Neil Patel

FEBRUARY 19, 2021

There’s the return of some old, favorite strategies like email marketing, but we’re moving forward into exciting new territory, too, especially when it comes to remote working and app development. Mobile apps and e-commerce stores are big business. It’s easy to integrate popular payment platforms, like Stripe. The upshot?

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Entrepreneurship Payment Methods Trends Payment Services 144

ProfitWell

JANUARY 17, 2020

Nowadays, it seems like you can buy just about anything on a recurring monthly plan: razors, clothing, knick-knacks, candles, etc. Over the past decade, ecommerce subscription companies have doubled down on the subscription model to monetize their relationships with customers. What are ecommerce subscription companies?

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Payment Methods Payments Payment Features Merchant Services 12