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 Churn Rate + Revenue
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18 articles |
| Page 1 of 1 | Previous | Next | BEYONDVC DECEMBER 10, 2009 Startups and financial models for SAAS companies While the revenue model may change as well, I like to at least understand going into the investment that the entrepreneur's head is in the right place and that the economics work right from the start. The remainder would go into deferred revenue. Another area that is quite important is churn rate. | | | | | | |
| STARTUPCFO SEPTEMBER 16, 2011 The ABCs of SaaS Math ARPU : Average Revenue Per User: Total revenue / # of paying customers. Churn : The % of users / customers that abandon the service over time. You will want to measure churn for users and churn for customers (assuming you have a free trial or freemium product). Calculated as 1 / churn rate. | STARTUPCFO DECEMBER 7, 2010 What’s your entry strategy? What churn rate should you expect? These are a small list of the things that need to be thought through in detail if you are building an entry strategy and setting informed targets for users and revenue. . But almost universally, the discussions lack granularity on how the company will build it’s user and revenue base. . | STARTUP MARKETING BLOG NOVEMBER 3, 2011 The Cult of “Great Product” One way to decide which market to serve is to ask yourself: “when we are generating $100m in revenue, which type of customer do we think will contribute the majority of this revenue?” A “false promise” will cause a high churn rate (people who stop using your product). Great products aren’t anointed by product gurus. | | | | | | | | |
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ANDREWCHENBLOG.COM | THURSDAY, JANUARY 28, 2010  How to create a profitable Freemium startup (spreadsheet model included!)
Do it right, and your conversion rates might be as high as 20%. If you have a super high churn rate, then at best you’ll be stuck at a revenue treadmill (doing lots of work but flat revenue and no profitability). And even more when you reach “killer app&# status and attain retention rates around 90%. MORE >> -
STARTUPCFO | FRIDAY, MAY 28, 2010 The SaaS Certainty Premium
That’s why fixed rate mortgages cost more than variable. times revenue while software companies have a median value / revenue of 2x. Assuming you have low churn rates (the rate at which subscribers cancel), you begin each month, quarter or year already knowing what a good portion of your revenue will be. MORE >> -
ONSTARTUPS | THURSDAY, DECEMBER 16, 2010  The @Dharmesh Test: 16 Questions For Better SaaS Companies
Do you track key metrics like CAC, LTV and cancellation rate? Cancellation Rate / Churn Rate: A percentage calculated as the number of customers that cancel in a month divided by the number of customer at the beginning of the month. There's nothing quite like the joy of having your revenues go up and 4:00 a.m. MORE >> -
STARTUPCFO | THURSDAY, MAY 6, 2010 SaaS Conversion: Which metrics matter?
At a high level, the key metrics to focus on are: Acquisition: Conversion rate from new unique visitors to new members, sign ups, etc? Activation: Conversion rate from new sign up to active user. Retention / Churn: % of users that remain active (or conversely abandon or churn out) over time. The SaaS Conversion Funnel. MORE >> -
FRESH INC.: THE STAFF BLOG | THURSDAY, FEBRUARY 16, 2012  Looking for Venture Funding? Math is Your Friend
Entrepreneurs routinely ask me what my one or two go-to financial metrics are, beyond the standard revenue, gross margin, net income and cash ratios. product company or one that sells perpetual licenses might not be too concerned with its customer churn rate, but a services company might be right to obsess over it. MORE >>
- SaaS Math: Activation, Retention and Churn STARTUPCFO | FRIDAY, SEPTEMBER 30, 2011
- Internet User Defined: A User by Any Other Name… IMMERSIVE WEB | MONDAY, JANUARY 23, 2012
- You Need to Win the Battle for Share of Mind BOTH SIDES OF THE TABLE | SATURDAY, MAY 21, 2011
- Business Model Analysis, Part 6: LTV and CAC PLATFORMS AND NETWORKS | WEDNESDAY, JULY 27, 2011
- Focus on awareness and metrics are keys to success UP AND RUNNING | FRIDAY, APRIL 27, 2012
- 3 Ways to do Cohort Analysis on SaaS Churn GUY NIRPAZ | TUESDAY, OCTOBER 25, 2011
- Is Subscription Revenue the Holy Grail for All Startups? LAUNCHING TECH VENTURES | SATURDAY, MARCH 5, 2011
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