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. I know the argument: The pay-back period on sales, marketing, and up-start costs is long, but there’s a profitable result at the end of the tunnel. So these costs are amortized over the customers you do land.
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