SaaStr

MARCH 8, 2024

With everything in AI moving so rapidly, what’s the best way to price Artificial Intelligence products or SaaS tools with custom AI features and integrations? So we asked the expert, Sandhya Hegde, General Partner at Unusual Ventures to share her best practices and trends for pricing and packaging AI products. Why is pricing so tricky?

AI 183

AI Artificial Intelligence Pricing SaaS 183

SaaStr

OCTOBER 6, 2019

Specialization works — but it’s an up-front investment. Competition in core deals is the root cause of systemic high sales & marketing expenses. You start to become a break-out leader, and there’s a target on your back: Competition leads to price cutting. Referrals and second-order revenue are working.

Sales Hiring 221

Sales Hiring Scale Sales Venture Capital 221

Andreessen Horowitz

OCTOBER 4, 2023

Introductory calls usually start with the lender seeking out information about, at a minimum: the company’s business overview, market opportunity and revenue model, funding history, valuation of last round, and what the company is looking to achieve with this debt raise. This includes assessments into loan tape (i.e.,

Outsourcing Services 116

Outsourcing Services Software Review Scale Banking 116

Sales Hacker

JUNE 16, 2022

For example, your best, most active customers may pull back on expansion talks or inquire about term or price adjustments. Of course, they don’t want to take their foot off the gas in terms of goals — which leaves a lot of revenue teams grappling to do more with less. That means working holistically, as a revenue team.

Scale 91

Scale Sales Hiring Sales Headcount 91

SaaSOptics

MAY 19, 2022

Not only is it one of the main drivers of revenue growth for early-stage companies, but it’s a primary goal for SaaS businesses across market stages. More customers = more revenue. Again, corresponding variables such as customer acquisition cost ( CAC ) and customer revenue all tie back to your acquisition strategy.

Acquisition 59

Acquisition Scale Strategy Software Review 59

OPEXEngine

FEBRUARY 1, 2022

It becomes the system of record, even more so today than the CRM or the back-end ERP, because it has the most real-time, accurate, and up-to-date information on the revenue lifecycle. Measure what matters and invest appropriately. When in hypergrowth, the focus is and should be on revenue growth with healthy unit economics.

SaaS Payments 52

SaaS Payments Payment Services Payment Solutions SaaS 52

OPEXEngine

JANUARY 14, 2020

Price/Revenue Ratio. Source: SEC filings – weighted average by company revenue. Many factors drive the high-growth of SaaS companies, including higher market adoption of SaaS and the structural advantages of the recurring subscription revenue model – see Why SaaS Companies Grow Faster. Public SaaS Companies. -8%.

SaaS Payments 59

SaaS Payments SaaS Scale Customer Lifetime Value 59

ProfitWell

MARCH 24, 2020

It’s simple: the subscription revenue model benefits both customers and companies. Customers enjoy the convenience of auto-renewals and having access to a high-value offer for a low ongoing investment. The ways in which companies price may vary but all SaaS companies rely on recurring revenue as a business model.

Subscription 72

Subscription Payment Features Payment Methods Payments 72

Kellblog

DECEMBER 27, 2021

Before diving in, let me remind readers that I do these predictions in the spirit of fun, they are not business or investment advice, and that all of my usual disclaimers and terms apply. SaaS provided provided both a market disruption opportunity and a total available market (TAM) expansion in each market segment.

Blockchain 143

Blockchain Technical Review Venture Capital Sales Hiring 143

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?”

Cloud 100

Cloud Scale AWS Machine Learning 100

Tom Tunguz

JANUARY 16, 2013

Grey arrows represent product pull and green arrows signify revenue flows. Google’s AdSense enables publishers to run ads on their websites to generate revenue. Expensify has adopted a bottoms-up strategy to win their market segment, so they target the end user who values ease of use.

Product Marketing 100

Product Marketing Marketing Advertising Sales 100

FastSpring

APRIL 13, 2023

From leading sales at Zillow to brand strategy at Tumblr to revenue at FiscalNote (a global policy platform), Justin Scott started noticing a trend. Across markets, companies were “taking big data sets and visualizing them in interesting ways to create user experiences.” And I was one of the first revenue employees at Zillow.

Payment Methods 115

Payment Methods Marketing Payments SaaS Payments 115

The Angel VC

SEPTEMBER 16, 2013

7th DO for SaaS startups Build a repeatable, profitable sales process Sales is a very different animal depending on the stage of your company, the market segment you're going after and on whether we're talking about inbound sales or outbound sales. Don't worry about scalability yet.

Scale 153

Scale Sales Hiring Startup Sales 153

OpenView Labs

MARCH 30, 2020

Before you know it, you can easily be submersed in wave upon wave of metrics and corresponding acronyms—customer acquisition cost (CAC), annual recurring revenue (ARR), annual contract value (ACV) and lifetime value (LTV), just to name a few. Monthly Recurring Revenue (MRR).

Benchmarks 54

Benchmarks Technical Review Churn Scale 54

ProfitWell

MARCH 24, 2020

It’s simple: the subscription revenue model benefits both customers and companies. Customers enjoy the convenience of auto-renewals and having access to a high-value offer for a low ongoing investment. The ways in which companies price may vary but all SaaS companies rely on recurring revenue as a business model.

Subscription 40

Subscription Payment Features Payment Methods Payments 40

SaaSOptics

APRIL 14, 2022

SaaS pricing is typically done on a subscription basis where customers pay a recurring monthly or annual fee to use a company’s software. In recent years, usage-based pricing has become popular amongst growing SaaS companies and their customers—but is it the right choice for your business? Types of Pricing Models.

Payments 98

Payments Pricing SaaS Payments Payment Services 98

Sales Hacker

SEPTEMBER 11, 2018

The optimal pricing strategy to IPO. The impact of sales and marketing on B2B execution. Driving constructive tension between sales and marketing. What Data To Look At When You’re In Series A Investment [26:02]. The Tension Between Sales And Marketing Needs To Exist [33:38]. What You’ll Learn. Welcome Tomasz!

Scale 42

Scale SaaS Investment Construction 42

SmartKarrot

SEPTEMBER 19, 2022

Setting clear growth and retention strategy for the assigned market segment. Apply here: [link] Role: Customer Success Manager Location: New York, NY, US Organization: HiBob As a Customer Success Manager, you will implement the onboarding of each of your clients (Mid-market and enterprise).

Customer Success 19

Customer Success Technical Advisors Technical Review Social Media 19

Tom Tunguz

SEPTEMBER 12, 2022

Ten years ago today, I wrote a post titled “ Choosing market segments on customer profitability. Market Cap in $b. Revenue in $b. The grocery store generates $44b in annual revenue but only 6% falls out the bottom of the P&L as earnings to invest in new projects like a modern data stack.

Startup 207

Startup Market Segmentation Pricing Enterprise 207

SaaStr

FEBRUARY 15, 2019

In Today’s Episode: * David Skok , General Partner @ Matrix Partners: Why does David believe that all good products have at least one variable pricing axis? Chetan Puttagunta , General Partner @ Benchmark: Why does Chetan believe we have seen a strong decline in the per seat pricing model? What are the pros and cons? Listen on Spotify.

Pricing 107

Pricing Benchmarks Scale SaaS 107

Chart Mogul

JUNE 29, 2018

You can set your own price point, avoiding any preconception among potential customers. Category owners or “kings” are often lauded in the SaaS industry where they take a disproportionately large chunk of market revenue. A few key opportunities for differentiation: Branding (see Why B2B is finally investing in brand ).

Venture Capital 70

Venture Capital Scale Cloud Branding 70

Sales Hacker

MAY 8, 2020

Invest in mentoring (41:01). ? Since 2012 I’ve closed over $160 million dollars in SaaS revenue, and I did most of that by doing multiple deals that were over $50 million dollars. This is not about moving around a few people or a few prices, this is about how we steward the most important IP in our company.”

Outsourced Development 61

Outsourced Development VP of Engineering Consulting Sales Hiring 61

Outseta

JANUARY 20, 2020

When I left Buildium five years later we’d grown from a start-up to a business with more than 12,000 customers and $16M in revenue. Focus on a market segment until you dominate it When I arrived at Buildium, we were selling our product only to residential property managers located in the United States. We mostly succeeded.

SaaS Payments 145

SaaS Payments Sales Hiring Payment Methods Payment Services 145

Sales Hacker

AUGUST 18, 2023

As always, you’ll hear real stories/strategies/tactics from real revenue operators spanning: sales, marketing, customer success, operations/enablement, product and hiring. Share It seems like every second start-up founder and revenue leader I talk to these days is trying to move upmarket or ‘break into the enterprise’.

Scale 67

Scale VP of Engineering Sales Hiring Enterprise 67

Intercom, Inc.

DECEMBER 4, 2019

That commitment and focus on how to foster real human connections is evident in every single thing we do on a daily basis, and the resulting success is clear to see, with a valuation of more than $1 billion and revenue to justify it. Do you compete primarily on price? On product performance? On simplicity? 3 Brand stretch.

Branding 209

Branding Underperforming Technical Team Technical Review Airlines 209

Sales Hacker

NOVEMBER 15, 2017

Account-Based Everything / Revenue. Account-Based Marketing. Annual Recurring Revenue. Average Sale/Selling Price. AB Testing (or Split Testing) is an experiment involving two variants, usually for measuring and comparing market response to each. Account-Based Selling / Sales Development. Account Executive.

Scale 99

Scale Payment Methods Sales Recruiting SaaS Payments 99

SaaStr

NOVEMBER 21, 2020

How does Rob think through pricing today in a way that encourages land and expand? How does Rob think about usage vs seat-based pricing in SaaS? How should sales and marketing work together on pricing? You look at the forward-looking ARR multiples on the stock price, and they were a lot lower back then.

SaaS Payments 241

SaaS Payments Scale Payment Services Payment Solutions 241

SaaStr

NOVEMBER 12, 2019

We had 13 million of recurring revenue, 100% year over year growth. Today, six years later, Pardot as part of salesforce.com last calendar year did 250 million of recognized revenue, so think about that. Five years to get to 13 million, bootstrapped, six years after that to get to 250 million of recognized revenue.

Sales Recruiting 161

Sales Recruiting Scale Outsourcing Services Sales Hiring 161

Mucker Capital

APRIL 6, 2023

Are there types of companies, market segments, industries, or business models where PLG does not make sense? If you go back to thinking about what kind of company is a great fit for PLG, there are two important criteria: The first one is your target segment, your customer size. The pricing for SaaS is much more complicated.

Startup 52

Startup Scale CTO Hire Outsourced Development 52

FastSpring

JANUARY 8, 2019

The AOV can be calculated by dividing the total number of orders received by the total sales revenue. A marketing concept where a business offers several related products or services and sells them as one package solution, often at a reduced price. A reduction to the basic price of goods or services. Back office.

Payment Methods 61

Payment Methods Merchant Services Payment Services Outsourcing Services 61

SaaStr

JUNE 3, 2020

Prior to founding mParticle, Mike was the Founder & CEO @ Interclick, where he organically grew revenue to over $140m in 5 years. The company went public in 2009 and was acquired by Yahoo in 2012 for $270m, a 50% premium on existing share price. Why did Michael make the move to CRO 8 months ago?

Sales Hiring 171

Sales Hiring Scale Technical Advisors Systems Review 171

ProfitWell

DECEMBER 4, 2019

And with the field having undergone a couple of “ knockout expansion years ,” with more revenue pouring into SaaS than ever, it has never been a better time for a young SaaS company. Recurring payments take the form of monthly recurring revenue, otherwise known as MRR. Heightened customer retention. Growth stage.

Business Model 54

Business Model SaaS Payments Payment Methods Payments 54

SaaStr

JUNE 16, 2020

Matt Garratt: So for those that aren’t familiar with Salesforce Ventures, we are the strategic investment arm for Salesforce. And so while the churn I don’t want to minimize it, stable base of revenue should be able to maintain that through the year. Certainly you have your pre book, you have your pull forward revenue.

Sales Hiring 156

Sales Hiring Scale SaaS Payments Payment Services 156

Sales Hacker

JULY 30, 2018

In this guide, I’ll share with you a proven B2B marketing strategy framework that will help you identify the most prolific market segments, your ideal customer profile, and the right marketing channels to generate leads. What Is A B2B Marketing Strategy? Segment your market and focus on a target segment.

B2B 71

B2B Scale Strategy Marketing 71

SaaSOptics

AUGUST 16, 2018

We discuss: How seed and Series A investment criteria differ. The first is really automating the order to cash to renewal process for these businesses as well as providing automated revenue recognition and deferred revenue calculations in an automated fashion. What early stage capital providers are looking for. Thanks, Ari.

SaaS 40

SaaS Scale Sales Hiring Venture Capital 40

SaaSOptics

AUGUST 16, 2018

We discuss: How seed and Series A investment criteria differ. The first is really automating the order to cash to renewal process for these businesses as well as providing automated revenue recognition and deferred revenue calculations in an automated fashion. What early stage capital providers are looking for. Thanks, Ari.

SaaS 40

SaaS Scale Sales Hiring Venture Capital 40

SaaSOptics

AUGUST 16, 2018

We discuss: How seed and Series A investment criteria differ. The first is really automating the order to cash to renewal process for these businesses as well as providing automated revenue recognition and deferred revenue calculations in an automated fashion. What early stage capital providers are looking for. Thanks, Ari.

SaaS 40

SaaS Scale Sales Hiring Venture Capital 40