Great read! The "Churn rates" section was super interesting. Our SaaS has hovered around 4-5% churn rate. Glad to see that's doing pretty OK! Interestingly enough in December we increased our prices by quite a lot (percentage wise, $2/month to $6/month). That month we saw an 8% churn rate, and January 6%, and this month looking like a bit less. It's going to be really interesting to see what happens in the future. Th…
Are you talking about monthly churn or yearly?
The Business of SaaS
211–220 of 252 posts
Re: The Business of SaaS
#212Re: The Business of SaaS
#213Re: The Business of SaaS
#214Yikes, that was the best article on SaaS that I've read all year. So much great information. A few things jumped out to me as off: > Conversion rates of low-touch SaaS trials with credit card not required: > 2%+: extremely good Really? 2% seems awful. If a company signs up for your trial, they must have a problem they're trying to solve. If you don't solve 98% of peoples' problems, it seems like you have a problem ge…
Well, I've had my little SaaS up and running for about 6 weeks. - The landing page gets about 30-70 hits per day (excepting the occasional spike) -- how many of those are bots and crawlers, I wonder? - I've had a grand total of FIVE (5) trial sign ups. - No buyers yet - My linode bill is currently about ~$120/month. - Still within the free tier on S3 and Mailgun. - You know, when I'm the only one using the app, I don…
e.g. Maybe replace $29.99 for 10 users with $2.99 per user (with a minimum sign up of 10 users)?
Re: The Business of SaaS
#215I've been following patio11's blog posts since way back in the Bingo Card Creator days, and he's part of what inspired me to start my own SaaS. I hope his gig at Stripe is good for him, because I think he's supremely well suited to the role of 'teacher' and I think posts like these are great (even if they are part of a content marketing strategy for Stripe)
Great blog, but part of me finds it sad that such an intelligent person spends a huge chunk of his life working on creating Bingo Cards.
Re: The Business of SaaS
#216Yikes, that was the best article on SaaS that I've read all year. So much great information. A few things jumped out to me as off: > Conversion rates of low-touch SaaS trials with credit card not required: > 2%+: extremely good Really? 2% seems awful. If a company signs up for your trial, they must have a problem they're trying to solve. If you don't solve 98% of peoples' problems, it seems like you have a problem ge…
Well, I've had my little SaaS up and running for about 6 weeks. - The landing page gets about 30-70 hits per day (excepting the occasional spike) -- how many of those are bots and crawlers, I wonder? - I've had a grand total of FIVE (5) trial sign ups. - No buyers yet - My linode bill is currently about ~$120/month. - Still within the free tier on S3 and Mailgun. - You know, when I'm the only one using the app, I don…
Re: The Business of SaaS
#217> Businesses and investors love SaaS because the economics > of SaaS are impossibly attractive relative to selling > software licenses. I would be careful and not over-generalize. The statement above is opposite of what many late stage investors think of SaaS companies. Their gross margins tend to be horrible. Some are basically in the business of being an intermediary mailbox for transferring money from their custom…
A SAAS client of mine's operational costs are like 1% of our revenue. Ok, they're at Series A/B funding sort of size. they've started to go international and we could also quite easily do an instance per country if we wanted, though I don't know what sort of pain that might cause.
Running ASP.Net/C#/Azure. Azure's a bit of a nightmare, would be running much better/cheaper on a dedicated server in my professional opinion (shock, horror, yes, I said it, cloud is a bit of a con).
I've spent 2-3 weeks per year "scaling" the code, which was written by other people who in some ways didn't know what they were doing and were trying to make it too much like a SPA which resulted in lots of ridiculous, excessive dupe calls for data and over-complicated code. After my last round of optimisation I doubt they'll need to scale up for a couple of years now, the CPU was basically sitting less than 20% and DB was about 40% even in the crazy Xmas rush, and we were on standard tiers (compared to the year I started where they had to turn up to premium a couple of times with 10x less users).
Re: The Business of SaaS
#218Earlier quoted context omitted.
Well, I've had my little SaaS up and running for about 6 weeks. - The landing page gets about 30-70 hits per day (excepting the occasional spike) -- how many of those are bots and crawlers, I wonder? - I've had a grand total of FIVE (5) trial sign ups. - No buyers yet - My linode bill is currently about ~$120/month. - Still within the free tier on S3 and Mailgun. - You know, when I'm the only one using the app, I don…
How are you marketing the product?
- Get listed in any/every saas (esp b2b) directory I can find (haven't done producthunt yet, though).
- Send out cold emails (not a lot so far). I'd start making cold phone calls if I wasn't sitting at a day job during business hours every weekday. I could try postcards..?
- Post to online formus - kind of like I'm doing here :)
I'm really trying to avoid resorting to PPC ads, but it might be time to do that.
I'm also thinking of making it free for academic use, just to get some folks using the product and talking about it.
Also, the thought to find a partner who knows bizdev/marketing/sales has occurred to me.
Re: The Business of SaaS
#219Earlier quoted context omitted.
Well, I've had my little SaaS up and running for about 6 weeks. - The landing page gets about 30-70 hits per day (excepting the occasional spike) -- how many of those are bots and crawlers, I wonder? - I've had a grand total of FIVE (5) trial sign ups. - No buyers yet - My linode bill is currently about ~$120/month. - Still within the free tier on S3 and Mailgun. - You know, when I'm the only one using the app, I don…
I find your pricing page a bit confusing (could well be me though) - I'm used to SaaS pricing being per-user while you are advertising 'packages' that actually look quite high but aren't really when you calculate the per-user price. e.g. Maybe replace $29.99 for 10 users with $2.99 per user (with a minimum sign up of 10 users)?
I know Jira, for example, has a low rate package for the first 10 users (basically like a paid trial), and then the pricing switches to per-user and it ramps up quickly.
Re: The Business of SaaS
#220Earlier quoted context omitted.
I can imagine this driving providers to work around that, structuring their service such that they can argue the user is still engaging with the service passively. For example, having data stored on their servers is use (as I may later want to use it, and incurs them a cost to store it). Or, perhaps being emailed updates about my credit score could be regarded as engagement as they can't necessarily tell whether I am…
For some SaaS businesses although, such as dropbox & google drive, their most of their business is storage. It would be hard to blame those kinds of services to keep on billing you even if you don't look at the data most of the time.