SaaS companies

“With these SaaS companies, you spend several years building the foundation, building the product, building the team, building everything. And then once you get to say one, two million dollars of M of AR, then you, then the goal is to grow and scale the busines…”

“So you get basically somewhere in the eight to 12 X multiplier effect on your revenues on your forward looking revenues on a pre money basis.”

“One percent monthly is kind of a general target for companies to aim for. If it's much above that, then that's pretty worrying.”

“I think a lot of SaaS companies are starting to go that way, because that's really how you get, like, the most out of the software, because, you know, you're working with people that know it the best and can get you the results that you're really looking for o…”

“I think great SaaS companies, great, great SaaS companies are paying something back inside of a year. You know, acceptable SaaS companies are paying something back inside of between two to three years.”

“It's probably less than 30%. Of your SaaS companies out there are actually showing a profit.”

“Anytime someone launches a content site or membership site, the hardest thing is churn is through the roof, especially to real SaaS companies that are software based.”

“A lot of SaaS companies, you know, even if they get to like 35 or 40 people, they, they've been focusing so much on like engineering product that sort of thing that they don't even have a marketing team in place and their founder probably isn't a marketer eith…”

“I mean, that's actually concerning how much revenue you typically don't see expansion revenue making up 30% of a company's growth until years Maybe three or four when they're in the five or ten million dollar AR rate.”

“I see that fast growing SaaS companies Raise at 20 times the current run rate.”

“Most SaaS companies will have roughly, like, assuming there's nothing weird, right? Like, you don't have a big component of, like, professional services, et cetera. Like, assuming all that, your good, healthy SaaS company should be running margins in the, and …”

“I think SaaS companies sort of after 10, twenty million quite often it plateaus a little bit and because there's maybe not that, that huge total addressable market. So they start sort of slowing down a little bit.”

“We don't want to buy out that channel because we want them to continue to grow their business running on our technology. And that's, it's sort of a fundamental difference between the way a lot of SAS companies work, where they think in terms of how can I grow …”

“I think the failure of a lot of SAS companies is to have an allergy to service. I think that you know, at the end of the day, being able to help your customers, not just use the product, but make good decisions when they're using the product is extremely impor…”

“Part of what I've done over the past two years, I don't obviously talk about this a ton publicly, but I've invested a lot of money via debt into SaaS companies.”

“The largest SaaS companies today, they usually start as some form of agency and they slowly morph into a more predictable software oriented solution.”

“I think acquisitions are a tool that most entrepreneurs in SaaS companies do not leverage often. I believe there's if you find the right strategic partner, you should pursue that.”

“Very successful SaaS companies come out of agencies, because you already know the problem, and you already have a built-in customer base.”

“Also true that a lot of these companies won't live up to it, and it'll take a year or two before people realize, hey, you know, they're nowhere close to being worth what we thought.”

“The most successful SaaS companies start as agencies.”

“Most of my big customers for testimonial, if they sign up the ultimate plan, the most expensive plan are from SaaS companies.”

“There's many SaaS companies, by the way, that have done AppSumo deals That have gone out of business.”

“I think a big house of cards in SaaS right now is SaaS companies who have a customer base that is other SaaS companies.”

“What review sites let you do and what most people don't realize is you can essentially pay to be number one.”

“We are focusing on clinics and the tangent, like the similar kinds of operations, because you see SaaS companies don't, we don't have, we don't really have Differential. A competitive differential.”

“Choose one conversion event. Have one way for them to start. You can then route them in different ways based off of what they do, but choose one way to start. Don't make them choose between a free demo, a free trial you know, whatever else”

“Essentially, if we priced too low, we would never build a raise or increase our prices with our customers. If we were inconsistent, we would lose all of our relation, like, our customers' relationship and our integrity with them, because unlike a lot of busine…”

“We recommend you change your prices once a quarter.”

“But companies that do this well have 18 to 54% higher lifetime value when they have at least one add-on.”

“What we see when we look at this across the 40,000 companies in our portfolio is that the highest performing ones, 20% of their revenue or more is from their existing customer base. Unfortunately, most the vast majority have zero or negative.”

“We look at this all the time with our customers, and we'll see folks missing out, both on the initial attempted payment, and then on subsequent attempted payments. Yeah, upwards of, like, 10% of their revenue, 15% of their revenue.”

“In twenty-twenty-two, companies were investing about a dollar 33 of sales and marketing expense fully loaded, that means comp, benefits, everything, to get one dollar of new or expansion arr.”

“New looks at how much sales and marketing expense did I invest to pursue new customer logos and ARR from those new customers. So you see it's much higher. It's a dollar 58. Because it's harder to grow ARR from new customers.”

“I think where most companies are then overspending is on the customer acquisition side of things. Until they can get that, you know, you think about the customer acquisition payback period, I think for a lot of companies, it's sort of north of 12 months.”

“Although that there are great examples out there, on average, most SaaS companies fail in doing client-facing analytics well.”

“When we're talking about customer analytics experience or client-facing analytics, I'm talking about you as SaaS companies offering the data to your end users so that they can make better decisions. It's not about analyzing your customer's behavior. No, it's a…”

“I don't think that SaaS companies are always a good fit for venture capital. And I'd say a lot more often than not, they're not a good fit for venture capital. There's so many small problems in the world that don't have, aren't, just don't have the explosive g…”

“We have a 3.6% churn rate. The average SAS company is 14%.”

“Unless you're building a rocket ship company, or a hardware company, or a defense manufacturing company, you don't need more than one extra ARR in, in equity capital in order to scale. And certainly not before you figure out what your unit economics are.”

“So, we get in this world where it goes from, like, too good to be true to too hard to handle, and that reminded me of, you know, twenty-twenty-one to twenty-twenty-three for most of these companies, right? Forget about raising cash. A lot of these strategies t…”

“Now, as SaaS companies, most SaaS companies are told Not to get into services. But the services layer actually can add a lot of stickiness. So think of it as 80% SaaS, 20% services. That thin layer, I think, can make accounts much more stickier, especially whe…”

“So don't gate the thing, I know in your head you're like, well that creates a lot of value. Yeah, sure it does. But build value on top of the value that customers are going to get from you. Right? So don't gate the thing that's going to make you sticky, that's…”