SaaStr

APRIL 14, 2023

Enterprise will likely have a different problem set vs. an SMB. So if you’re trying to fit your business model into what SaaS looks like in the U.S. Mistake #4: Orienting The Business By Series Instead Of Milestones If you have a burning need to resolve and want to change the world, then do a full pick-up plan.

Development Team Review 210

Development Team Review Technical Review Underperforming Technical Team SMB 210

Clouded Judgement

MARCH 22, 2024

In it's truest form, ARR is used by pure SaaS business models to describe the aggregate annual value of the entire customer set. Many laude the SaaS business model because ARR is inherently predictable - you know what you’re revenue will be over the coming 12 months, and sometimes even further out than that.

AI 183

AI Revenue Cloud Technical Advisors 183

SaaStr

SEPTEMBER 14, 2022

But you can’t base your business model purely on gut instinct: you need to understand the problem by conducting serious research. In the early days, UserZoom struggled with deciding whether its target market should focus on enterprise or SMB. UserZoom CEO Alfonso de la Nuez and CMO Sophie Chesters have a few suggestions.

Scale 203

Scale Venture Capital Sales Hiring SMB 203

SaaStr

FEBRUARY 14, 2023

For SMB-facing companies, over 110% should be your goal. The beauty of SaaS as a business model is its asset-light nature, selling bits, not atoms. This number should always be great than 100 and is typically measured as a percentage. For enterprise-facing companies, great than 120% is a good number.

Metrics 200

Metrics SaaS Marketing SMB 200

SaaStr

JANUARY 12, 2022

Another top mistake SMB folks make trying to sell enterprise. “Dig deep about their business model before sending them a proposal.” This sounds so basic, but again it often isn’t, especially if you are using less experienced and/or SMB trained sales reps to sell into the enterprise.

CTO Hire 267

CTO Hire Sales Hiring New CTO CTO 267

FastSpring

SEPTEMBER 16, 2022

No matter what your business model, we meet you where you are. With over eight years of experience in SaaS, the large majority of which are within SaaS payments and billing, Tony is constantly immersed in growth driven projects and dialogues with SMB and Enterprise SaaS companies looking to scale. About Our Presenters.

Pricing 110

Pricing Payment Solutions Payment Services SaaS Payments 110

OPEXEngine

MAY 18, 2021

SaaS metrics are viewed differently at different stages of growth and for different sales models, primarily whether a company is selling into an SMB or enterprise marketplace. Growth Stage – Scaling the Business, and . NRR benchmarks depend on whether you are selling into the SMB or enterprise market. .

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

OPEXEngine

JUNE 11, 2020

Pros and Cons: SaaS SMB vs. Enterprise Models. SaaS companies selling in the SMB market are structured operationally very differently from SaaS companies selling in the enterprise market. At OPEXEngine, we pull apart the different nuances of each business model to make sure we are benchmarking companies correctly.

SMB 59

SMB SaaS Benchmarks Subscription 59

SaaStr

MAY 24, 2019

In This Episode We Discuss: * How Andrew made his way into the world of SaaS from his starting his first software business at the age of just 18 and how that led to his founding of Wrike? * How does Andrew advise founders on the question of whether to start in enterprise or SMB? What are the benefits of starting in SMB?

Sales Hiring 145

Sales Hiring Scale SMB Sales Recruiting 145

OPEXEngine

OCTOBER 18, 2021

Three-quarters of SMB (small and medium business) decision-makers understand that using digital technology effectively is key to business success in today’s digital era. It requires a shift in how you think about, operate, and manage the business to make it more valuable and relevant—and ultimately, to improve performance.

SMB 49

SMB Cloud Business Model Technology 49

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. Unlocking a new business model.

Scale 151

Scale Marketplace as a Service Mobile Sales Hiring 151

FastSpring

OCTOBER 18, 2018

In other words, we are now in an era of subscriptions, in which businesses are progressively moving towards subscription-based business models. How is your digital business keeping up? Always remember the number one rule of subscription businesses: it’s all about the relationship, and relationships are a two-way street.

Payment Features 60

Payment Features Payment Services Subscription Payment Methods 60

OPEXEngine

JUNE 23, 2021

Too long a payback period for your business model is a quick indicator that something needs to be improved, either CAC or ARPU or both. Companies selling smaller contracts to the SMB have shorter payback periods while companies selling enterprise subscriptions tend to have longer payback periods, extending beyond 18 months.

Benchmarks 52

Benchmarks Acquisition SMB Subscription 52

OPEXEngine

JUNE 9, 2021

And companies with revenues under $10M selling to the SMB were hardest hit, with an almost 50 point decline in growth rates last year. The median cost of revenue as a % of revenue shifted a few points up and down for all revenue and business model cohorts. It was a tough year to be small, whether as a supplier or a customer.

SaaS 52

SaaS Benchmarks Travel Entertainment 52

Software Platform Consulting

MAY 20, 2019

Upwork has offerings for all sizes of clients from SMB to the enterprise. Upwork has a more complicated business model involving a freemium offering, subscription offerings with differing transaction rates for freelancers and clients. I love when business models collide (see here and here ).

Marketplace as a Service 40

Marketplace as a Service Software Review SMB Web Development 40

Neil Patel

FEBRUARY 4, 2021

While the two agencies don’t work together much, they trade referrals if the SMB branch can better help specific clients meet their goals. Between the two agencies, we work hard to have something for everyone, small and large businesses alike. NP Digital Small Business Marketing Services. SMB Digital Marketing Case Studies.

VP of Engineering 126

VP of Engineering Marketing Marketplace as a Service Social Media 126

SaaSX

FEBRUARY 14, 2021

I am reminded of Hubspot’s free online website grader tool that attracted hundreds of thousands of SMB marketers into their subscriber base before they had an online purchase path. But you can still incorporate product-led drivers into your business model and capture at least some of the same benefits.

Scale 59

Scale Payment Features SMB Acquisition 59

FastSpring

SEPTEMBER 2, 2020

“It doesn’t take a genius to understand that business model failure comes when CAC (the cost to acquire customers) exceeds LTV (the ability to monetize those customers.)” . “To compute the LTV, you would look at the Gross Margin that you would expect to make from that customer over the lifetime of your relationship.

Scale 128

Scale Payment Methods Payments SaaS Payments 128

SaaStr

SEPTEMBER 15, 2023

Its business model of going global and going inbound from India is the differentiation. Big Bet #4: Go After Bigger Fish — Overlay Field Motion Over Inbound People often assume inbound is all SMB, but one of the things Freshworks realized early on is that you can close larger deals with inbound. Burger King was 300 seats.

Sales Hiring 225

Sales Hiring Scale SMB AI 225

Sales Hacker

JANUARY 29, 2018

To grow, the company needs to structure its resources into two initiatives; SMB and MidMarket, each requiring a different approach. As the business grows, new markets are discovered, and new PODs are launched to call on these markets. . Use of PODs with Different Business Models. Week 4: Pursue A-leads.

Sales Recruiting 74

Sales Recruiting Scale Sales Hiring Sales 74

SaaStr

OCTOBER 31, 2019

Contrast that with companies that might also sell into the SMB segment of the market where the ASPs, the average deal sizes are lower. SMB businesses just go out of business much more frequently, and so their gross retention numbers are going to be lower.

Cloud 100

Cloud Scale AWS Machine Learning 100

ChurnZero

JUNE 11, 2021

Another example is creating a health score based on tiered implementation: SMB onboarding versus Enterprise onboarding. Your segment and timeframe may differ depending on your business model. Explore weighting factors differently for greater insight into a specific product or service. .

Software Review 96

Software Review Systems Review Underperforming Technical Team Scale 96

Intercom, Inc.

MAY 13, 2021

Of course, we always excelled in SMB at Slack as well. It’s not analogous, but there are learnings you can take in your SMB business as you think about going up or getting into bigger companies and bigger deployments. When I left, we were just bridging the $1 billion mark. It was really an incredible learning journey.

Scale 177

Scale Customer Success Strategy Sales Hiring 177

ChurnZero

MARCH 18, 2022

If they don’t get 150% NRR, then it actually breaks the business model. If you tell me that we have this awesome land-and-expand model, we go in with a really low price, and then we have a dedicated expansion team that does these upsells, and I say, “Wow, what an amazing story. What’s your NRR?”

Customer Success 98

Customer Success Metrics SaaS Banking 98

OPEXEngine

NOVEMBER 17, 2020

As a result, the company was comparing itself to companies selling millions of low-priced subscriptions in a high-volume, transactional SMB model. But this company had more of an enterprise sales model. However, KPIs are only valuable if they are calculated correctly, and that depends on your stage of growth and business model.

Systems Review 52

Systems Review Technical Review Payment Features Scale 52

User Pilot

AUGUST 6, 2023

Don’t hesitate to adjust your strategy or even pivot your business model when necessary. Source: SMB Compass. Instead of relying on your original vision for how people would use the product, it’s always best practice to let the data speak for itself and then find areas that need improvement.

Investment 90

Investment Banking Social Media Customer Lifetime Value 90

OPEXEngine

FEBRUARY 22, 2022

SMB customers will want high-touch sales engagement and service delivery but SMM SaaS companies will likely not have the budget necessary to justify providing this level of sales support. Some SMM companies may use all four depending upon the business model. Direct Sales.

SaaS Payments 52

SaaS Payments Payment Services Payment Methods Marketplace as a Service 52

SaaStr

NOVEMBER 2, 2019

How does Krish think about purely serving the SMB market? How does he think about the mortality rate of SMBs? How does Krish think your customer acquisition and GTM strategy has to change with the movement from SMB to enterprise? What does Krish mean when he says, “In SaaS, you either sell to one of 2 customer profiles”?

Scale 127

Scale SaaS Payments Sales Recruiting Payment Services 127

Baremetrics

JANUARY 24, 2021

Transitioning to SaaS On January 1st 2020, we transitioned the company out of a strategic partnership (we were operating the platform under a non SaaS business model!). We were looking to relaunch the user-driven, SaaS side of our businesses. This is because of the nature of SMBs occasionally pivoting or going out of business.

Churn 71

Churn SaaS Payments Payment Methods Payment Solutions 71

SaaStr

AUGUST 9, 2019

It’s not an SMB where you’re getting volumes of 100 a day. You said there about mid-market and it not having the same velocity of SMBs. I clearly don’t get out enough if I have a couple of questions on mid-market versus SMB, but let’s go for it. A couple of questions on this. So it is pretty interesting.

SaaS Payments 132

SaaS Payments Cloud Technical Review Scale 132

Brian Balfour

MARCH 21, 2017

On the Y-Axis we have similarity, representing how similar the data-producing sample group is to your own product, business, and channel. High similarity would mean that the sample group has the same target audience, a similar product, and a similar business model. What is the business model?

Benchmarks 40

Benchmarks Business Model Acquisition Subscription 40

Aaron Beashel

MAY 5, 2014

It’s important to note that SaaS is a product delivery model, not a business model. Salesforce, Xero and Unbounce are all SaaS products but their business models are VERY different. I’ve never seen a business sell a $10,000 per month SaaS product on a touchless acquisiton model.

Engineering 100

Engineering Scale SaaS Acquisition 100

SaaStr

MARCH 27, 2019

What were Leyla’s biggest learnings on people and business model through seeing the first hand hyper-scaling of Salesforce from $500m to $16Bn? But I do have to ask, and I couldn’t not start with this, in terms of some learnings from that, especially really applied to two verticals, people and business model.

Scale 131

Scale VP of Engineering Mobile Scaling 131

SaaStr

NOVEMBER 16, 2020

Andy MacMillan: I spent five years at Oracle in the Fusion Middleware Group, working in Thomas Kurian’s org and ended up hopping over to Salesforce to learn the SaaS business model and ran a business inside of Salesforce for a while. So I think that’s why we have sales ramps. And I guess, how do you structure yours?

Sales Hiring 189

Sales Hiring Scale Leadership Sales Enablement 189

SaaStr

DECEMBER 21, 2022

It takes a lot of intentional investment to scale with enterprise customers in addition to self-serve or SMB markets. It’s much easier to stick to an older business model and playbook—enterprise software companies have been doing it for decades.

Scale 186

Scale Enterprise Scaling Management 186

Sales Hacker

SEPTEMBER 11, 2018

We’re a firm that really focuses on team first, and the people, because we believe that people are the ones that build businesses, and people are the ones that shape markets, rather than the other way around. The ultimate conclusion is you can build a business selling to any sized customer. That’s one.

Scale 42

Scale SaaS Investment Construction 42

FastSpring

DECEMBER 7, 2023

But if you’re not dealing in mergers and acquisitions every day like Carl is, you might have a lot of questions about how to best position your business if you’re interested in selling. So for example, you know services are valued at completely different multiples, than like a SaaS business.

Software Review 128

Software Review Technical Review Development Team Review Branding 128