Measure Your Churn. But What’s Even More Important is to Measure Your Almost Churn. 5 Tricks to Help You Here.
Churn is a paramount topic in SaaS, as we all know. If every dollar of ARR is worth $6+ in the long term, including upsells and second order revenue … then of course, by the same token, for every dollar of ARR that churns … you’re losing $6 of notional ARR. Lose a $100k customer? [...]
Consequences. And The Decisions We Make. Or Don’t.
Every decision has consequences. We often don’t fully perceive the consequences because they are often hidden by the compromises that make us feel better. Every step forward requires a decision. Or the inverse – indecision. Or as I call it, “decision, by indecision,” which is insidious. It rots the core very slowly until you don’t realize [...]
The Importance of Benevolent Dictators
I believe that groups coming together to make tough decisions driven by consensus tend to make poor decisions. This is especially true in startups where speed matters and where there is a need to constantly calibrate direction and where these decisions can have existential outcomes. Should you increase your burn rate by adding 2 senior [...]
The Virtues and Opportunities in Being #2
In our insular tech world, we’re all obsessed with being #1. Look at Google Search vs. Bing + Yahoo! Facebook vs. Google+. Salesforce vs. nobody else of any scale. Etc. etc. We all know in tech, in internet, almost all the spoils go to #1. Except … Often, not always. In fact, there are a [...]
3 Tips for Building Discounts into Your SaaS Pricing Model (from OpenView Labs)
The good folks at OpenView Labs did an interview with SaaStr and broke it up into a few articles. The first they published the other day, on Pricing, reproduced below. They have a lot of interesting SaaS insights and advice on their blog that ties into the same themes we’re working on here at SaaStr [...]
The one number (45) that explains Constant Contact’s success
The Business of Software Conference sounds like a phenomenal event. I haven’t attended it, but I did recently run across one of the sessions from their 2012 conference, a talk by Gail Goodman, the CEO of Constant Contact: For those who don’t know, Constant Contact is a publicly traded online marketing company with over 500,000 [...]
VMware vs. Amazon … ROUND TWO … FIGHT! — VMW Conceding Impotence?
Two and a half years ago I wrote about the inevitable throwdown between VMware and Amazon Web Services (AWS), but recently VMware’s senior leadership appeared to outright admit defeat. The message to VMware’s partners was simple: “We want to own corporate workload,” said Pat Gelsinger, VMware’s CEO. “We all lose if they end up in [...]
Marissa Mayer and Yahoo’s telecommuting policy: Right motivation, wrong execution
When Yahoo! hired Marissa Mayer, I supported the move, believing that the board needed to shake things up, and that given the dismal state of the business, Mayer was probably a better candidate than they could ever have expected to attract. I also supported the move on Mayer’s part; she wasn’t ever going to become [...]
Your Customer Success Team. Hire Early. And No Squishy Goals — It’s All About the Numbers.
If this is your first SaaS company, you may not have ever hired or built a Client Success team. This one isn’t nearly as risky as a VP of Sales, or a VP of Marketing hire. If you hire a great, experienced Client Success leader as your first hire here, and you like him/her, and [...]
In 15 Years From Now Half of US Universities May Be in Bankruptcy. My Surprise Discussion with @ClayChristensen
“In 15 Years From Now Half of US Universities May Be in Bankruptcy.” Such was the quote of Clayton Christensen followed by, “… in the end I’m excited to see that happen. So pray for Harvard Business School if you wouldn’t mind.” Who else does Clayton pray for? Apple. Yup! Watch the 30-minute interview to hear why [...]
Cloud Expo New York: Managing Legal Risks in Cloud Computing
I’ll be giving a session at the 12th Annual Cloud Expo New York on managing legal risks in cloud computing. We’ll discuss how cloud computing can be adopted and the dangers avoided on a practical, nuts and bolts level. The topics I’ll be discussing are: Legal considerations Control, protection and security of data Privacy concerns [...]
Is Infochimps running from the Data Market business?
Infochimps is one of the early champions of the data market business, and one that I’ve followed for several years. As I mentioned in my last post on the topic, the company has recently begun to pivot towards delivery of their (compelling) Enterprise Cloud big data analysis offering, with the company’s data market origins slipping further [...]
10 Great Questions to Ask a VP Sales During an Interview
Ready to hire your first VP Sales? But haven’t done it before? Let me give you a partial interview script that may help a bit. You’ll have to vary it for different types of SaaS businesses — a bit. But it will basically work for all SaaS companies from say $200k in ARR to $10m [...]
StitchLabs–Solving SMBs Inventory Woes
Many readers know that outside of technology, I own a business that manufactures apparel and other products and sells them both online and through retail outlets. Having been involved in that business for 17 or so years, I’ve had first-hand experience of just how difficult it is to run a tightly integrated operation with e-commerce, [...]
FinancialForce on a Tear
When salesforce.com invested in FinancialForce a few years ago, there was keen interest in how this would help the company grow. There’s never been much clarity around those numbers since the parent company of FinancialForce, Unit4, doesn’t break out the individual numbers of operating divisions. That is a bit clearer now since in its last reporting period, [...]
