I have discussed in the past the past the benefits of SaaS and specifically recurring revenue model. The main benefit of the recurring revenue model is the predictability of revenue, customer acquisition payback, customer lifetime value (CLTV), and the ability to optimize Sales & Marketing spend accordingly. But in order to truly benefit from a recurring… Continue reading A template for measuring SaaS
Tag: Saas Metrics
It’s all about the churn
As discussed earlier the two most important metrics of a SaaS company are growth rate and retention rate. Wall Street understands this and considers retention as the second most important factor in valuing a SaaS company (first is growth rate). I would take it even further and argue that for SaaS startups retention should be… Continue reading It’s all about the churn
Grow or die
Now that we’ve talked about why SaaS is a beautiful business model, I’d like to give some guidance and tips to help do it right. Of course there is no “one size fits all” answer to how to do SaaS, but there are many things which are common across companies and many things we see that… Continue reading Grow or die
Venturing Startup Nation 