A Smart Bear: Startups and Marketing for Geeks

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Pricing determines your business

A Smart Bear: Startups and Marketing for Geeks

Your product is designed with natural tripwires to trigger other pricing ( Freemium model ), or not (business model left as an exercise to your future self). Requires venture funding because you have no income, and if you’re successful you’ll need lots of people and tech to run the business.

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Deep dive: Cancellation rate in SaaS business models

A Smart Bear: Startups and Marketing for Geeks

I put in these particular elements because I did a study of the reasons people cancel at WP Engine , and these are the main reasons for cancellation. For a quality-service company like WP Engine a high cancellation rate is a sign of terminal cancer even if acquisition rates are also increasing, so this metric isn’t useful to us.

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Why startup biz dev deals almost never get done

A Smart Bear: Startups and Marketing for Geeks

As the founder of WP Engine, I receive weekly emails from startups proposing a “win-win” deal. Here’s the problem , and how you can change your approach to business development so that it can succeed. Let’s also assume that WP Engine will receive $50 per sale, which is higher than the typical offer.

Startup 293
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No wait, of course THAT is the single most important SaaS metric

A Smart Bear: Startups and Marketing for Geeks

Only by combining these metrics can you get a clear and true picture of the health of the business model. Larger companies like WP Engine can have maybe three or four, but still not many. For example, you can increase price which increases MRR but also increases cancellations as people can’t afford it.

Metrics 270
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The full story of “the one important thing” for startups

A Smart Bear: Startups and Marketing for Geeks

I was listening to Noah Kagan (founder of AppSumo and the marketing mind behind Mint , and the author of this great guest post ) talk to the current crop of Capital Factory companies, when he said something so simple, so obviously correct, and yet it completely changed how I thought about my approach to WP Engine.

Metrics 273
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The mistake of 1/c in LTV calculations

A Smart Bear: Startups and Marketing for Geeks

This is the third article in a series on novel ideas for SaaS metrics, which started with The unprofitable SaaS business model trap and COC: a new metric for cancellations. ” (This is how I currently do it at WP Engine.) is too generous unless it’s a mature, predictable business. Which method?

Retention 262
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SSEBITDA – A steady-state profit metric for SaaS companies

A Smart Bear: Startups and Marketing for Geeks

This is the fourth article in a series on novel ideas for SaaS metrics, which started with The unprofitable SaaS business model trap , COC: a new metric for cancellations , and The mistake of 1/c in LTV. Its tough for a growing SaaS business to ascertain whether or not it’s truly profitable. Here’s a way to do it.

Metrics 238