Software pricing strategist Jim Geisman shares three reasons why software companies often miss the mark when it comes to the delicate relationship between packaging, price, and cost.
For more than 20 years, I’ve seen many emerging and established software companies tackle the issue of product pricing and packaging in a very similar way.
First, they start with a set of financial goals. Next, they determine what exactly they plan to develop. After that, they determine what they think will be the right price point. And, finally, they make a wild guess of what level of sales volume they can drive in based on the market size.
A few keystrokes later, poof, they’ve produced a very broad (and probably inaccurate) revenue forecast that is often shown to board members or investors. Unfortunately, there are three reasons why this is not a very smart approach.
Does your software as a service company have a truly viable go-to-market sales model? Discover two important metrics that can help you determine your profitability.
One of the biggest mistakes entrepreneur and VC veteran David Skok sees software as a service (SaaS) startups make is trying to “buy their way into a repeatable, scalable model.” Sure, investing in hiring more sales reps will naturally result in more customer acquisitions. However, more sales reps is not synonymous with profitability.
In this week’s Labcast, Skok, author of the popular For Entrepreneurs blog, explains why you need to make sure you have a sustainable go-to-market sales model in place before expanding you team. Listen in to learn the metrics to use for measuring the profitability of your model and the goals you should be setting for your sales funnel.
While some might blame the lack of venture-backed, female-led businesses on sexism, .406 Ventures founding partner Maria Cirino doesn’t see it that way. In this post, the former Ernst & Young Entrepreneur of the Year shares her own experience raising capital and explains why the issue has much more to do with confidence.
Typically, when Maria Cirino and her fellow partners at .406 Ventures enter investment meetings with female entrepreneurs, the tech veteran — who has founded two successful tech companies and an early stage VC — says she notices two distinct things about them.
First, they tend to be less arrogant — which Cirino says is a breath of fresh air. And second, they seem to be more hesitant to actually ask for money — which Cirino finds odd given the underlying purpose of the meeting.
What does preparing the perfect bath have to do with SaaS success? Discover the four keys to sustainable growth for your software-as-a-service business.
When you think about the essence of what it takes to create a truly valuable software-as-a-service (SaaS) company, the formula is relatively simple: Acquire as many high-quality customers as possible, do everything you can to retain those customers, and develop systems or processes that allow you to add new customers quickly and cost-effectively.
In that sense, it’s a lot like filling a bathtub.
Discover how you can break down and better utilize the massive amounts of data your SaaS company collects by organizing it into cohorts — and how doing so will lead you to more meaningful and actionable insights.
In the world of SaaS, data is everything. It allows a management team to gauge the health of its company, better understand the impact of key performance indicators like customer acquisition cost, churn, and monthly recurring revenue, and make more informed, cost-effective decisions based on hard evidence, rather than gut feeling.
That’s assuming, of course, that SaaS businesses actually do something with the data they collect.
Starting to get serious about raising money? Don’t commit these investor pitch mistakes and shoot yourself in the foot right off the bat.
Everyone knows they need to learn from their own mistakes. But why stumble if you don’t have to? You should always be looking to right your own wrongs, but it’s just as important to take lessons from the missteps of those around you. So before you start up a round of conversations with VC’s about raising capital, learn what investor pitch mistakes will make Jeanne Sullivan, founder of StarVest Partners, tune you out immediately.
If you’re offering freemiums in hopes of increasing customer acquisition, you might want to reconsider your pricing strategy. Learn how raising prices can actually result in more profitable customers and higher retention rates.
Talk to many SaaS entrepreneurs, and they’ll tell you that offering freemium or low-cost subscription plans is a no-brainer. After all, in many cases, the easiest and most effective way for a SaaS business to convince customers to sign up — and ideally pay for premium features eventually — is to have them experience the product.
Talk to other SaaS experts, however, and they’ll tell you that offering low entry-level prices is actually a counter-intuitive customer acquisition and retention strategy.
Learn why establishing a regular investor communication pattern is priority number one plus what to include once you’ve made it a habit.
The number one reason a startup fails is a dwindling bank account that fails to support its business. One of the best ways to keep your investors happy, and therefore willing to help when you need your next round of funding, is to establish a consistent line of communication. Ty Danco and Dharmesh Shah explain what you should be including in your regular investor communication in this post at OnStartups.