OpenView Labs

APRIL 8, 2021

The response since the usage-based pricing playbook has far exceeded my expectations. My TechCrunch byline went semi-viral, Bessemer named usage-based pricing part of the “ new normal ” for SaaS go-to-market strategy, and Alex Wilhelm said it’s “ one theme that’s come up time and again ” in public company earnings calls.

Pricing 97

Pricing Scale Subscription Payment Features 97

Sales Hacker

FEBRUARY 17, 2022

What sales investments should you focus on in 2022? When a global social media platform wanted to measure how successful its holiday ad pricing promotion was, it needed to know whether customer service associates were promoting the relevant products to customers and if their doing so led to a boost in sales. Revenue intelligence.

Scale 89

Scale Investment Sales Forecasting 89

ChurnZero

JULY 8, 2022

It was clear that, barring any wildly outlandish figures, customer retention wasn’t a dealbreaker in their decision to invest. Net revenue retention (NRR) is taking center stage as the qualifying metric for determining the health of a SaaS business. Net revenue retention defined. How can you increase net revenue retention?

Technical Review 98

Technical Review Software Review Retention Metrics 98

OpenView Labs

SEPTEMBER 8, 2021

2021 has proven to be the year of usage-based pricing. . 45% of expansion stage SaaS companies now say they have a usage-based or consumption-based pricing model, according to data from OpenView’s forthcoming 2021 Finance and Operations benchmarks report. . Product: Treat product investments as a revenue-generating expense.

Pricing 64

Pricing Customer Success Scale Compensation 64

User Pilot

MARCH 25, 2024

An accurate valuation is necessary to secure the right price for the company or adequate funding without diluting its share value. It uses revenue and operating costs to determine the company’s value. The multiple depends on numerous factors, like sustainability and transferability of revenue and growth.

SaaS 103

SaaS Customer Lifetime Value Acquisition Metrics 103

SaaStr

AUGUST 29, 2022

10.000 SaaS CEOs, Founders, Revenue Leaders, and VCs will join us for 3 days of tactical content, networking, and epic evening events when the Cloud comes to San Mateo. Scaling Revenue in 2022: What’s the Same and What’s Different? If you haven’t already, sign up here for tickets before we sell out.

Scale 235

Scale Sales Hiring Marketplace as a Service B2B 235

Tom Tunguz

SEPTEMBER 6, 2021

Imagine you have a dollar to invest and you can choose between two options: a public cloud service or a layer 1 blockchain. revenue /ebitda. These new shares are often granted to employees as compensation. If I work on behalf of a crypto company, I receive tokens as part of my compensation. Property/ Asset. Value Driver.

Government 260

Government Compensation Blockchain Banking 260

OpenView Labs

MARCH 16, 2021

The usage-based pricing model almost feels like a cheat code —it enables SaaS companies to more efficiently acquire new customers, grow with those customers as they’re successful, and keep those customers on the platform. But the shift from pure subscription to usage-based pricing is nearly as complex as going from on-premise to SaaS.

Pricing 52

Pricing Payments SaaS Payments Payment Solutions 52

SaaStr

MARCH 7, 2023

Pepper shares that ICONIQ, a venture capital firm with $10B under management, made fewer investments last year than ever before. Some other strategies for creating a more efficient go-to-market are: Adjusting pricing and contract terms with customers. AE and SDR compensation is another tactic to align GTM with what you want.

Outsourcing Services 164

Outsourcing Services Scaling Venture Capital Forecasting 164

Tom Tunguz

OCTOBER 14, 2015

The purpose of a price is to tax usage of a product. That’s how companies generate revenue. Complex or unintuitive pricing model. Complex or unintuitive pricing model. A good pricing model appears simple and logical to the customer. Often for applications, it’s people - hence a pricing model by seats.

Pricing 100

Pricing Startup SaaS Compensation 100

Clouded Judgement

JULY 21, 2023

Investing in growth is not only normal, is essential. But there’s a downside to investing in growth: FCF is generally negative. Said another way, the revenue they bring in is less than the salary they’re paid. The reality is these companies today should be trading ~2x revenue. So FCF takes another hit.

Cloud 130

Cloud Software Sales Hiring Scale 130

OpenView Labs

FEBRUARY 12, 2019

The knee jerk reaction to an increase in costs is often a price increase. Some years ago, I was sitting in the office of the VP of Pricing at a major manufacturing company. He was called out of our meeting by the CEO to explain to the board how he was going to protect margins by increasing prices. But is it a good idea?

Pricing 56

Pricing Customer Lifetime Value Business Model Acquisition 56

Baremetrics

SEPTEMBER 8, 2021

The market value of equity The market value is the price a company would get if it were sold. For publicly listed companies, the market value is easily understood as the total number of shares multiplied by the share price. Market capitalization is calculated by multiplying the current stock price by the total number of shares owned.

Payment Methods 81

Payment Methods SaaS Payments Compensation Payment Services 81

Neil Patel

JANUARY 10, 2021

Investment options for a 401(k) are determined by the plan the company chooses. Employees may get some say in where they invest the money, though they will most often be choosing from a limited portfolio of options. They have varying degrees of support, charge fees according to their own rules, and offer different kinds of investments.

Compensation 115

Compensation Government Investment Pricing 115

Baremetrics

DECEMBER 12, 2021

If you were aggressive and invested 100% in the S&P 500, you’d have ended 2020 with nearly $2 million! Had you been a bit more conservative, investing 70% in the S&P 500 and 30% in bonds, and rebalanced annually, you’d have finished 2020 with just under $1.7 You know what really blew my mind?

Business 98

Business Compensation Investment Government 98

Tom Tunguz

SEPTEMBER 10, 2013

Inside sales driven distribution companies grow about 40% faster than companies using field sales, web sales or channel, or about 37% revenue growth per year. Price the Product Between $1k to $25k Annually to Optimize Growth. Cost of Customer Acquisition is About 11 Months' of Revenue. Median Monthly Revenue Churn is 0.75%.

Benchmarks 113

Benchmarks Startup Sales Hiring Compensation 113

Andreessen Horowitz

OCTOBER 16, 2023

As for pricing, how do you know you’re not leaving value on the table? Speaking of, we go beyond the typical discussion of product-market fit into the concept of product-market-sales fit, and what that means for product design, to services, to pricing and packaging, to product management, and more. When should companies offer services?

Product Marketing 76

Product Marketing Scale Sales Hiring Sales Recruiting 76

SaaStr

MARCH 31, 2022

It’s definitely an investment that requires that kind of executive level visibility. And I think some folks sort of asked, “Did you have to change your product to get on the marketplace or your pricing?” And I would also say, regardless of the field, is how you go about compensating this channel. Good advice.

Scale 190

Scale Marketplace as a Service Cloud SaaS Payments 190

OpenView Labs

NOVEMBER 12, 2020

Respondents were primarily CEOs (38%) and CFOs (29%) at expansion stage software companies with $1 to $20MM in annual recurring revenue (57%). It now matches sales and marketing spend at the average SaaS company as folks continued to put significant investments into R&D during the pandemic.

Benchmarks 52

Benchmarks Scale Technical Review SaaS 52

OPEXEngine

OCTOBER 5, 2021

Software companies that increase their share of revenue from subscription models have stronger growth in share price. Software and other technology deals have been more likely to overperform and less likely to underperform than most investments in other sectors. Boost consumption through investments in customer success.

Software Review 52

Software Review DevOps as a Service Software Underperforming Technical Team 52

Neil Patel

JULY 23, 2021

It’s tempting to think of negotiation only in terms of price, but the term represents many possibilities beyond money. Improve Operations: Negotiation can help you find the right compensation package for your employees, get discounts from your manufacturers, have a successful fundraising round, and help you scale your business faster.

Pricing 144

Pricing Scale Compensation Communication 144

OPEXEngine

AUGUST 9, 2022

No digital tool can compensate for a lack of discipline at the front line. By benchmarking critical go-to-market KPIs, like the Magic Number – which measures how many new dollars of revenue growth are obtained getting from your sales and marketing investment compared to your competitors. Amplify low-cost sales channels.

Scale 59

Scale VP of Engineering Payment Services Underperforming Technical Team 59

InsightSquared

MAY 7, 2019

When scaling the business, sales typically averages roughly 30% of revenue, so therefore sales spend is one of the biggest investments a company can make. Shorter sales cycles equate to more sales and greater productivity from invested resources. The Key Metric: Average Sales Cycle.

Scale 102

Scale Sales Hiring Metrics Sales 102

SaaStr

JANUARY 12, 2023

Companies that operate above 40% revenue growth rate and profit margin stand to generate a sustainable profit, while those operating below 40% may have cash flow or liquidity issues. . “It’s As a result, it’s crucial to evaluate the right blend of long-term investments and target the core methodically. Product efficiency.

Consulting 40

Consulting Underperforming Technical Team Management Marketing 40

OpenView Labs

MAY 14, 2020

What complicates it even more is the current macroeconomic environment—the hesitancy of many venture firms to make new investments, and the lack of clarity around what a “market correction” might look like in terms of pricing venture deals. Rarely does a company see an exit price larger than its addressable market size.

Venture Capital 64

Venture Capital Scale Compensation Pricing 64

OPEXEngine

JANUARY 30, 2020

More capital invested, more SaaS offerings, continued expectations of rapid growth are running smack into limits on the availability of qualified employees and a potential economic slow-down which may or may not happen. was invested in the US alone by VCs in 2019. Not all of that will be reinvested, but a lot will. billion in 2019.

Sales Hiring 49

Sales Hiring Benchmarks SaaS Acquisition 49

FastSpring

NOVEMBER 28, 2018

Starting, or investing in, an affiliate program is a great idea for just about any ecommerce company. Here are seven reasons why every SaaS company should start—or invest in an affiliate program. Loyal Customers Can Help Drive Revenue as Affiliates. This is even more important for a software-as-a-service (SaaS) company.

Sales Recruiting 64

Sales Recruiting SaaS Business Social Media 64

OpenView Labs

FEBRUARY 10, 2020

The software company’s stated strategy was to offer great products paired with low pricing and self-service purchasing, a Product Led Growth (PLG) recipe that fueled the company’s sustained profitable growth. Be thoughtful about sales compensation and operations. Be thoughtful about sales compensation and operations.

Sales Hiring 57

Sales Hiring Scale Headcount Sales 57

SaaSOptics

MAY 22, 2018

Same store sales is a classic method retailers use to help determine if a retailer is growing organically or if revenues are ballooning simply due to more store openings. Venture capitalists have really become the thought leaders for key subscription metrics such as churn , monthly recurring revenue and customer lifetime value.

Subscription 40

Subscription Payment Features Technical Review Airlines 40

SaaSOptics

MAY 22, 2018

Same store sales is a classic method retailers use to help determine if a retailer is growing organically or if revenues are ballooning simply due to more store openings. Venture capitalists have really become the thought leaders for key subscription metrics such as churn , monthly recurring revenue and customer lifetime value.

Subscription 40

Subscription Payment Features Technical Review Airlines 40

ProfitWell

MARCH 9, 2020

Today, a bit on demand-based pricing. Demand a better pricing strategy. We know there are several ways in which you can decide to price your product , but making that decision is where the real magic lies. This is usually done by setting a very high price and lowering it gradually.) Functionly, yours.

Systems Review 52

Systems Review Pricing Software Review Compensation 52

SaaStr

DECEMBER 20, 2019

292: Manny Medina is the Founder & CEO @ Outreach, the market leading sales engagement platform that turns your team into a revenue driving machine. Befofe that Manny was a Senior Product Manager @ Amazon where he engineered the compensation system for Amazon Associates and Web-Services which accounts for 15% of Amazon’s traffic.

Scale 141

Scale Sales Hiring Construction Education 141

Baremetrics

MAY 7, 2019

Company C was funded by pre-orders from customers, a friends and family round, and then through revenue-based financing for a period of time. Bootstrapping purists insist on only using revenue from customers to fund the business. Build your startup in a way that you don’t need investment. ” Rob Walling of TinySeed.

Finance 111

Finance Startup SaaS Payments Payment Methods 111

SaaStr

JULY 15, 2020

And so obviously the people that need consumers to spend money for their revenue and then their contribution margin just had no shot of selling things, look at model T-shirts or something. They’ve been actually quite clever and scrappy and figured out how to offset the decline of revenue. That’s a fair caveat.

Investment 151

Investment Scale Travel Venture Capital 151

SaaStr

NOVEMBER 2, 2019

I mean so simple that you get so much time and mind share to polish the product to create best in class, which compensates for a lot of competition that you don’t inherit with the business that grows with customer. That’s in a case when pricing is successful. So you bake that into pricing model.

Scale 127

Scale SaaS Payments Sales Recruiting Payment Services 127

OpenView Labs

DECEMBER 17, 2019

OpenView’s experts weighed in with their predictions across product, sales, marketing, pricing, corporate development and talent. Their compensation is directly linked to the revenue that they generate for the business. Pricing gets all of the focus in pricing and packaging discussions. What do you think?

Trends 67

Trends Sales Recruiting Technical Review SaaS 67

SaaStr

OCTOBER 29, 2019

SaaS is about creating long-term value for your customer, and being compensated appropriately for that value as a business. Naomi Pilosof Ionita | Investing Partner @ Menlo Ventures. We’re going to talk about matching price to value, and I’m going to share some lessons from my time as both an operator and an investor.

Payments 100

Payments Pricing Compensation SaaS Payments 100