Walling: Low Churn and High ARPU Enable $5M Scale in Any Market
Rob Walling · Saas Companies that Anyone Can Start with Rob Walling · Jan 12, 2022 · at 1:10:09
Rob Walling illustrates the quantitative SaaS metrics required to reach multi-million dollar annual recurring revenue versus business models doomed by high churn and low ARPU.
0:00 / 0:31exact quote · 31.4s
▶ Watch the full episode on YouTube → 720p mp4 · rendered on demand · StarZero watermark
“And so if you're, if everybody's too price sensitive to your point earlier, if everyone's a fly fisherman podcast and everyone's paying in, you know, 10 to 20 bucks a month, and that's kind of where most people are, and then your churn is 10%, like, you just can't. You know, almost impossible to build a 1,000,002 million dollar business. But when you get to the point where, hey, my average revenue per user is a hundred or 500 a month, and your churn is two or three percent, you would have to own the whole market. Like, there's almost any market is big enough that that can be a five million dollar business.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Rob Walling
Walling: Only 1% of Tech Companies Should Raise Venture Capital
“I think one percent of companies, one percent of tech companies need funding and the other 99% really shouldn't, shouldn't do it.”
Walling: TinySeed will generate venture-like returns from $10M–$100M outcomes
“I don't think we will have a billion dollar outcome. I just don't see that being reasonable. I think we'll have a lot of 10 to 50, 10 to a hundred million dollar outcomes, and the number, we've run a bunch of models, and in fact, if you go to tinyc.com slash t…”
Walling: 100x pricing when enterprise buyers demand redlines and SSO
“The moment someone approaches you, a potential customer, and says, Cool. We like your software. We need to redline your terms of service, or we need to invoice with POs, or we need single sign-on, or we need a Salesforce integration, or we need, there's this w…”
Walling: 4% Retirement Safe Withdrawal Rule Is Flawed
“And I actually think the four percent rule is bullshit. I think you need to be a little more cautious. So it's about three, three and a half percent.”
Walling: $5M-$10M Is Financial Freedom; Net Worth Above $10M Is Excess
“I think somewhere, it's somewhere between five and ten million, I think is most people's number. Depends on where you live. Depends on how you live. But I think anything north of 10 is like, it is excess. I'll say that. I, I'm north of 10. And I feel like I, m…”