SaaStr

SEPTEMBER 5, 2022

Product-led growth (PLG) companies have become a major trend in the world of SaaS over the last few years. These companies are characterized by being product-led; in other words, conversion, retention, and growth are led by the product itself. Many product-led companies do not go to market with the right pricing.

Sales Recruiting 254

Sales Recruiting Business Pricing Churn 254

SaaStr

JANUARY 31, 2023

Merchant payments have become the bulk of not only its revenue, but importantly, have been growing twice as fast as SaaS revenues). So a 33% increase in the majority of its plans should have a dramatic impact on revenue in the coming 18 months: They aren’t alone. First up is Zoom. Yup, $1.00. More on that below.

Pricing 250

Pricing Merchant Services Payment Solutions Payments 250

Tom Tunguz

FEBRUARY 13, 2023

Large customer revenue contribution increased again sequentially to 63% of revenue, up from 57% in the fourth quarter last year. Large customer revenue contribution increased again sequentially to 63% of revenue, up from 57% in the fourth quarter last year. represented 53% of revenue and increased 44% year-over-year.

Cloud 233

Cloud Azure Headcount Software Review 233

SaaStr

FEBRUARY 3, 2023

4/ Our product was truly viral — and we did invest a lot there in ease-of-use and viral propagation at the product level. We had so many leads from second-order revenue, viral, partners, etc. So maybe, for this product, at that time, it wasn’t a bad strategy. Everyone had to truly execute at a high level.

Sales Hiring 244

Sales Hiring Acquisition B2B Investment 244

SaaStr

OCTOBER 6, 2023

This is the same advice they give YC companies to become much more successful at fundraising when they’re pre-product market fit. Any founder you talk to likely remembers every investor who said no to them. If you’re a seed-stage startup, Michael shares the best ways for you to present your company to startup investors. That’s the pitch.

Payment Methods 229

Payment Methods Startup Payment Solutions Sales Hiring 229

SaaStr

APRIL 12, 2022

Dear SaaStr: How Do You Change the Price of Your SaaS Product Without Upsetting Existing Customers? Think of a start-up growing quickly: $100k in revenue Year 1. $1m Because you’re adding so much new revenue and customers, any price increase from those early, grandfathered customers (e.g., Just makes them unhappy.

Pricing 241

Pricing SaaS Revenue Customer Success 241

SaaStr

AUGUST 24, 2022

Toast’s rep productivity is flat, and its average tenure is down, but a big chunk of this is due to territory expansion. As reps get better at selling in a new territory, efficiency and productivity. At least 20% of your customers from referrals and second-order revenue. #4. Fast forward to today.

SaaS Payments 295

SaaS Payments Scale SMB Payment Solutions 295

Payrix

JANUARY 30, 2024

Payments revenue is a large part of our business plan and will lay the foundation for creating a comprehensive ecosystem that makes the lives of nonprofits easier. By integrating with Payrix, Novich shared how in short order “we coded, tested, and had merchants onboarded and processing payments.”

Payments 130

Payments Merchant Services Payment Solutions Payment Services 130

SaaStr

APRIL 20, 2020

And they are actually happy and love your product? But 8 times out of 10, it shows the earliest stages of real product-market fit, i.e., potentially having something. Because SaaS and recurring revenue compounds. Never Quit If … 1. Never Quit If … You Have 10 Unaffiliated, Happy Paying Customers. That’s real.

Scale 318

Scale Payment Features Engineering Product Marketing 318

SaaStr

APRIL 3, 2024

As the kickoff to our first fully digital SaaStr AI Day, Jennifer Tejada , the CEO of PagerDuty, chatted with Jason Lemkin, SaaStr CEO and Founder, about navigating the shift to Generative AI and what Artificial Intelligence in SaaS might look like in the next 6 months, as well as years to come. How to Buck Up and Go Long in SaaS?

Generative AI 241

Generative AI AI Technical Review Software Review 241

SaaStr

NOVEMBER 23, 2022

Algolia’s Bernadette Nixon (Chief Executive Officer) and Michelle Adams (Chief Revenue Officer) have spent the past few years developing this relational toolbox. Chief Revenue Officers are, at their core, officers: responsible for the top-line growth of the company. Sometimes voices get raised, but it’s to get the best outcomes.

Underperforming Technical Team 277

Underperforming Technical Team Leadership Outsourced Development Finance 277

SaaStr

MAY 11, 2021

If you close Starbucks, and they invest 3 months getting up to speed on your product, and you see real usage — they’re not going anywhere for now. And what happens is you’ll lose all your Second Order Revenue. Once we’re in, it’s so hard to rip us out. But here’s the thing.

B2C 265

B2C Churn Enterprise Revenue 265

SaaStr

APRIL 10, 2020

They didn’t just buy your product once. Your second-order revenue engine still needs to work. The worse the miss this year, the more you need to go talk to your customers. Make sure that the $2m or $5m or $20m you ended the year with at least renews as a cohort, even if for not as much revenue as you’d planned.

Sales Hiring 326

Sales Hiring Startup Investment Revenue 326

SaaStr

FEBRUARY 19, 2022

After all, when you launch, your product will be pretty feature-poor. And why would some Fortune 500 company buy your little MSP (Minimum Sellable Product) product run by a team of 8 guys in a one-room office? Today, 63% of the revenue is 10+ seat deals, and they have 2,000 Enterprise customers. It sounds nuts.

SMB 336

SMB SaaS Enterprise Software 336

SaaStr

JANUARY 24, 2024

Solving High Volume, Low Conversion at Lattice Dini Mehta joined Lattice at $3M in revenue when it had just 10 people in seat for Go-To-Market and 7 salespeople. Can you start and stop a PLG motion? How should you handle presenting challenges to your C-suite team when you’ve just joined the company? In the early days, you have to.

Scale 233

Scale Sales Hiring Scaling Revenue 233

SaaStr

JUNE 24, 2022

There is no perfect order for hiring VPs. Sure, there is a suggested order , but any great VP is accretive. No one buys SaaS products for the fun of it. We’ve recently been posting polls on SaaStr’s LinkedIn account to get a feel for what SaaS companies are doing in the current environment. More Than a Good Rep. #2.

Sales Recruiting 219

Sales Recruiting Sales Hiring Scale Customer Success 219

SaaStr

OCTOBER 26, 2020

If you’ve been around since the earlier days of the internet , a certain phrase may send shivers up your spine — “Roundtrip Revenue.” ” People went to jail at AOL for this , overstating revenue by as much as $1 billion that wasn’t really real. We are all buying from each other.

Revenue 276

Revenue SaaS Marketing Sales 276

Clouded Judgement

NOVEMBER 10, 2023

When I think about the monetization of AI (and which “layers” monetize first) I’ve always thought it would follow the below order, with each layer lagging the one that comes before it. And this “product” had a ~50% gross margin. Follow along to stay up to date! yes, that’s negative 100%).

Cloud 183

Cloud Artificial Intelligence AI GCP(Google Cloud Platform) 183

Subscription Flow

APRIL 18, 2024

How do you keep increasing your revenue in a marketplace that has reached its point of saturation? Simply put, subscriber engagement is a way of defining the degree of interaction, interest, and outright participation that the subscribers of a business have with the product and/or service that the business is offering.

Engagement 94

Engagement Customer Lifetime Value Revenue Subscription 94

SaaStr

APRIL 6, 2021

Growth fueled by the addition of transactional revenue, not SaaS revenues. Olo’s explosive growth in the past 24 months prior to IPO wasn’t fueled so much by its SaaS revenue, but by transaction revenue as part of orders. As last as 2018, 93% of Olo’s revenue was pure SaaS.

Merchant Services 252

Merchant Services SaaS Payments Payments Payment Services 252

SaaStr

AUGUST 19, 2021

Here are some rough rules: You want a VP of Everything (Sales, Marketing, Product, Eng) by about $1m-$2m ARR. But as you approach $8m-$10m ARR, there will be enough revenue. IME, rough order to make hires in: VPM: $0.2m IME, rough order to make hires in: VPM: $0.2m What skills should he or she look for? A bit more here.

Sales Hiring 279

Sales Hiring Part-Time VPE VPCs (Virtual Private Cloud) Startup 279

Clouded Judgement

APRIL 5, 2024

A favorite clip of mine is when Russ Hanneman is talking about how pre-revenue businesses are the best kind of businesses. Here’s part of his quote: “If you show revenue people will ask how much and it will never be enough…If you have no revenue you can say you’re pre revenue.

Cloud 161

Cloud Scale Pricing Revenue 161

SaaStr

FEBRUARY 14, 2023

For one simple reason: Second Order Revenue. What it all means is that if you do it right, you’ll make 6x or more the revenue from your customers after the sale itself. If you are a SaaStr reader, you’ll know how passionate I am about Customer Success, since Day 1. Word-of-Mouth. Champion Change. Talk to them.

Customer Success 293

Customer Success Compensation Churn Enterprise 293

SaaStr

JULY 11, 2021

You’ll have to deal with the fact customers have pretty bad ideas of what you should do with the product. They’ll have to respond to the challenge of what it takes the close, upsell, and retain revenue. They’ll have to respond to the challenge of what it takes the close, upsell, and retain revenue. Users are an aggregate.

B2C 265

B2C SaaS Revenue Metrics 265

SaaStr

JANUARY 2, 2021

If 20% of your revenue is Smaller customers, 50% Medium, and 30% Large (a not uncommon scenario), align your energy and efforts proportionately. Your product / dev budgets. Second-order revenue and a mini-brand start to become huge accelerators around Year 3. Revenue per lead “magically” goes up. You did it.

Sales Hiring 294

Sales Hiring Headcount Pricing Market Segmentation 294

SaaStr

SEPTEMBER 1, 2021

Marqeta Board Member Amy Chang interviews Peters about her extensive experience in revenue and marketing and how to align the two strategies. Marketing and revenue teams should work together to keep the leads moving toward conversion. . This process must involve both revenue and marketing in order to see the most accurate picture.

Revenue 202

Revenue Strategy Marketing Interviewing 202

SaaStr

JANUARY 6, 2021

Airtable is a low code, bottoms-up business which means that its users don’t have to be in IT or have a technical background in order to build useful internal databases within Airtable. The product side is foundational to build a horizontal route and commit to it. Stay True to Your North Star. Why Horizontal vs Vertical Growth .

Scale 204

Scale Software Review Scaling Sales Hiring 204

SaaStr

JANUARY 17, 2021

Yes, they can slow you down. And the sales team, even if they are imperfect, gets pretty good at selling a product after they’ve been doing it for a while. They all aren’t beloved products. The customers use the product because they have to. In practice, high churn is the only thing. It’s not that hard.

SaaS 363

SaaS Venture Capital Churn Branding 363

SaaStr

JUNE 12, 2022

But as soon as they don’t see any easy extra revenue out of them … they bail. Nuttin’ Second, Like it or Not, There is A Natural Order to Thing s. You want everyone rowing together, not worrying too much about cash or equity, just building a great product. That probably means 400 demos. And 2,000+ calls.

Compensation 252

Compensation Customer Success Interviewing Sales 252

User Pilot

MARCH 7, 2024

A user journey funnel outlines the steps that the user completes while interacting with the product, from the moment they first log in. A user journey funnel outlines the steps that the user completes while interacting with the product, from the moment they first log in. Let’s get to it! Next, select the conversion criteria.

Sales Funnel 95

Sales Funnel SaaS User Experience Trends 95

Subscription Flow

JANUARY 29, 2024

In the context of subscription models, accrued revenue is the money that a business has made but hasn’t yet received in cash. Accrued revenue is important for accurate financial reporting, as it ensures that revenue is recognized in the period in which it is earned, regardless of when the cash is received.

Payments 59

Payments SaaS Payments Payment Services Subscription 59

Subscription Flow

MARCH 1, 2024

When you have the correct payment gateway incorporated with ClickFunnels, that you can access a world of opportunities that will improve your online presence and maximize your revenue streams. When talking about ClickFunnels payment gateways – when a reliable payment gateway is integrated with ClickFunnels – this vision comes to pass.

Payment Services 95

Payment Services Payments Payment Methods Merchant Services 95

Subscription Flow

DECEMBER 1, 2023

Recurring revenue models, or subscription models , can be a great way for businesses to generate income while providing customers with the options they want. However, a distinct set of metrics is needed for the subscription business model in order to track and keep an eye on the company’s health.

Subscription 59

Subscription Payment Features Metrics Business 59

FastSpring

MARCH 23, 2021

Order refunds, action locking, and reversing affiliate commissions may not be the most exciting topics related to affiliate marketing. Order Refunds. Order refunds occur when a customer requests a refund for an order, or they dispute a charge with their bank, and the funds are returned to the customer.

Payment Methods 148

Payment Methods Payments Marketing Payment Services 148

FastSpring

APRIL 18, 2024

FastSpring is an all-in-one payments platform for SaaS, software, and digital products businesses, including VAT and sales tax management, payment localization, and consumer support. But with international growth comes a long list of international business concerns about how to appeal to potential customers in new countries.

Payment Methods 78

Payment Methods Payments SaaS Payments Merchant Services 78

Andreessen Horowitz

SEPTEMBER 18, 2023

This piece, Part A, uses Clay Christensen’s Jobs to be Done lens, along with an assessment of viable product wedges and business models, to share what we see as the most promising applications of AI in enterprise healthcare. The tasks are labor-intensive, with low historical adoption of traditional software products to facilitate them.

Healthcare 142

Healthcare AI Artificial Intelligence Payment Solutions 142

Totango

SEPTEMBER 22, 2023

We believe these collaborations are cornerstones for enterprises to deliver seamless experiences for their customers and to create the interconnectedness with cross-functional partners and systems needed to drive long-term revenue growth. Announced during our flagship event, Totango Live!

Enterprise 113

Enterprise Revenue Scale Innovation 113