SAAS revenue models and slow ramp

Good read: 8 tips from Dave Cancel  

https://seekingwisdom.io/saas-companies-beware-the-slow-ramp-of-death-3edcc1b6444a#.37992rqeb

Highlights:

If an investor tells you that you can’t build a real business on $20/month, direct them to Constant Contact.

Their average selling price is $37/month, they have 375k customers, they are on target to do $170 million+ in revenue this year, and they are a publicly traded company (AKA liquidity event).

SAAS (Software as a Service) startups need to focus on getting on past what Gail calls the slow ramp of death. When selling low-priced subscriptions you make your money in subsequent years — not up front.

The slow ramp of death is even harder to get past at an average selling price of $37/month; 1000 customers at that price brings in enough revenue to pay a small handful of employees.

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