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Pricing determines your business

A Smart Bear: Startups and Marketing for Geeks

Consider the consequences of these monthly pricing possibilities: $0/mo means your goal is to maximize growth (trust and usage) instead of revenue. 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).

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Strategy Roundtable For Entrepreneurs: Exciting Companies Lined Up For Microsoft Startup Grant Finals

ReadWriteStart

The company already has paying customers and a validated business model. Outsourcing is spreading at a frantic pace today with a global footprint and players like oDesk and eLance have made it very easy for companies to connect with outsourcing vendors. You can read more about Freshdesk on the 1M/1M Incubation Radar today.

India 123
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Strategy Roundtable: Do Not Spray and Pray

ReadWriteStart

First up was Brad Barrett presenting GrillGrate , a grill accessory with which Brad has built a year-to-date revenue of $400,000. With enterprise customers, this would result in tremendous exit barriers, making sales cycles long and involved, which a small startup will find hard to withstand. GrillGrate. PowerStores.in.

India 114
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Is Your SaaS Go-to-Market Strategy Tsunami-Proof?

ConversionXL

A big downside of the high-touch sales model is that the CAC is out of control, and the sales cycles are extremely long. As you can see in the graph below, high-touch sales is a leading indicator of CAC. A high-touch sales process can balloon customer acquisition costs. Perfect for hyper-niche solutions.

Marketing 289
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Strategy Roundtable For Entrepreneurs: High-Octane Energy In Pune

ReadWriteStart

Manoj is experiencing a long sales cycle of close to 12 months, but he has already created a sustainable company that has revenues and profits. He is exploring outside financing, but my concern is that unless the growth rate accelerates, this particular business may not fit the venture model.

India 116
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Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

Be prepared to cross the desert - SaaS requires R&D and sales expense up front for a multi-year stream of revenue, so it demands enough investment capital to fund 4+ years of runway. Farming is also often overlooked, but can help grow customer accounts and revenues from 30% upwards (if successful). Great list!