The unprofitable SaaS business model trap
A Smart Bear: Startups and Marketing for Geeks
JULY 23, 2013
Marketo filed for IPO with impressive 80% year-over-year growth in 2012, with almost $60m in revenue. So no, this upside-down business model isn’t what a SaaS business should construct. Even with very broad numbers, you can see how this model doesn’t work. Use viral growth to offset cancellations.
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