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May 23, 2023 · 18m · top-founders

Learnings from 35.7K SaaS companies to help make you recession proof

Tripp Brockway · 13m spoken Nathan Latka · 48s spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

In this SaaS Open presentation, Tripp Brockway of Paddle shares data-driven growth and retention strategies derived from over 35,000 SaaS companies to help software leaders navigate economic downturns. He outlines actionable tactics across ICP narrowing, multi-product expansion, global localization, quarterly pricing reviews, and involuntary churn recovery.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Nathan holds 5.3% of the talking time here. How this is scored →

Nathan as informed peer 0.2 Guest teaching 0.2 Guest disagreement 0.2 Nathan pushing back 0.0
05100:0010:000:55–2:59 · Nathan as informed peer 0/10 Macroeconomic SaaS Trends and Market Headwinds Solo conference talk presentation by Tripp Brockway outlining macroeconomic trends, customer acquisition cost spikes, and rising churn rates across 40,000 SaaS companies. Host is not present during this monologue.3:00–6:15 · Nathan as informed peer 0/10 The Imperative of Focus and Operational Distractions Presentation monologue outlining operational distractions and the imperative to focus sales positioning strictly on high-converting target profiles. Host does not participate.6:19–10:51 · Nathan as informed peer 0/10 Driving Expansion Revenue with Multi-Product and Add-ons Monologue covering multi-product expansion, cosmetic and localized payment methods, European pricing power, and VAT compliance risks. Host is not present.10:53–14:30 · Nathan as informed peer 0/10 Pricing Strategy: Quarterly Iteration and Pricing Committees Monologue detailing quarterly pricing iterations, pricing committees, voluntary vs involuntary churn dynamics, and cancellation psychology prompts. Host is not participating.14:32–18:09 · Nathan as informed peer 1/10 Interactive Audience Q&A on Retention, Macro Outlook, and Localization Host Nathan Latka asks a single broad macro recovery question, which Brockway humorously deflects before giving a data-backed cautious outlook. An audience member then asks about deep content localization versus checkout localization.0:55–2:59 · Guest teaching 0/10 Macroeconomic SaaS Trends and Market Headwinds Solo conference talk presentation by Tripp Brockway outlining macroeconomic trends, customer acquisition cost spikes, and rising churn rates across 40,000 SaaS companies. Host is not present during this monologue.3:00–6:15 · Guest teaching 0/10 The Imperative of Focus and Operational Distractions Presentation monologue outlining operational distractions and the imperative to focus sales positioning strictly on high-converting target profiles. Host does not participate.6:19–10:51 · Guest teaching 0/10 Driving Expansion Revenue with Multi-Product and Add-ons Monologue covering multi-product expansion, cosmetic and localized payment methods, European pricing power, and VAT compliance risks. Host is not present.10:53–14:30 · Guest teaching 0/10 Pricing Strategy: Quarterly Iteration and Pricing Committees Monologue detailing quarterly pricing iterations, pricing committees, voluntary vs involuntary churn dynamics, and cancellation psychology prompts. Host is not participating.14:32–18:09 · Guest teaching 1/10 Interactive Audience Q&A on Retention, Macro Outlook, and Localization Host Nathan Latka asks a single broad macro recovery question, which Brockway humorously deflects before giving a data-backed cautious outlook. An audience member then asks about deep content localization versus checkout localization.0:55–2:59 · Guest disagreement 0/10 Macroeconomic SaaS Trends and Market Headwinds Solo conference talk presentation by Tripp Brockway outlining macroeconomic trends, customer acquisition cost spikes, and rising churn rates across 40,000 SaaS companies. Host is not present during this monologue.3:00–6:15 · Guest disagreement 0/10 The Imperative of Focus and Operational Distractions Presentation monologue outlining operational distractions and the imperative to focus sales positioning strictly on high-converting target profiles. Host does not participate.6:19–10:51 · Guest disagreement 0/10 Driving Expansion Revenue with Multi-Product and Add-ons Monologue covering multi-product expansion, cosmetic and localized payment methods, European pricing power, and VAT compliance risks. Host is not present.10:53–14:30 · Guest disagreement 0/10 Pricing Strategy: Quarterly Iteration and Pricing Committees Monologue detailing quarterly pricing iterations, pricing committees, voluntary vs involuntary churn dynamics, and cancellation psychology prompts. Host is not participating.14:32–18:09 · Guest disagreement 1/10 Interactive Audience Q&A on Retention, Macro Outlook, and Localization Host Nathan Latka asks a single broad macro recovery question, which Brockway humorously deflects before giving a data-backed cautious outlook. An audience member then asks about deep content localization versus checkout localization.0:55–2:59 · Nathan pushing back 0/10 Macroeconomic SaaS Trends and Market Headwinds Solo conference talk presentation by Tripp Brockway outlining macroeconomic trends, customer acquisition cost spikes, and rising churn rates across 40,000 SaaS companies. Host is not present during this monologue.3:00–6:15 · Nathan pushing back 0/10 The Imperative of Focus and Operational Distractions Presentation monologue outlining operational distractions and the imperative to focus sales positioning strictly on high-converting target profiles. Host does not participate.6:19–10:51 · Nathan pushing back 0/10 Driving Expansion Revenue with Multi-Product and Add-ons Monologue covering multi-product expansion, cosmetic and localized payment methods, European pricing power, and VAT compliance risks. Host is not present.10:53–14:30 · Nathan pushing back 0/10 Pricing Strategy: Quarterly Iteration and Pricing Committees Monologue detailing quarterly pricing iterations, pricing committees, voluntary vs involuntary churn dynamics, and cancellation psychology prompts. Host is not participating.14:32–18:09 · Nathan pushing back 0/10 Interactive Audience Q&A on Retention, Macro Outlook, and Localization Host Nathan Latka asks a single broad macro recovery question, which Brockway humorously deflects before giving a data-backed cautious outlook. An audience member then asks about deep content localization versus checkout localization.

speaking balance: gold is Nathan, purple is the guest (3 minute bins)

0:00 · Nathan 29.2% · guest 70.8%0:00 · Nathan 29.2% · guest 70.8%3:00 · Nathan 0% · guest 100%3:00 · Nathan 0% · guest 100%6:00 · Nathan 0% · guest 100%6:00 · Nathan 0% · guest 100%9:00 · Nathan 0% · guest 100%9:00 · Nathan 0% · guest 100%12:00 · Nathan 0% · guest 100%12:00 · Nathan 0% · guest 100%15:00 · Nathan 1.8% · guest 98.2%15:00 · Nathan 1.8% · guest 98.2%18:00 · Nathan 0% · guest 100%18:00 · Nathan 0% · guest 100%
Sharpest disagreement ▶ 15:22 Deflecting Macro Recovery Prediction

Tripp Brockway playfully dismisses Nathan Latka's broad question on predicting the market recovery, stating he would be a billionaire if he knew, before pointing out data shows things will likely get worse first.

 Hardest push from Nathan ▶ 15:17 Inquiring on Market Rebound

Host Nathan Latka briefly interjects during the Q&A to prompt the speaker on when macroeconomic indicators and the SaaS market will realistically turn around.

 Biggest teaching moment ▶ 15:22 Macro Reality Check

Tripp Brockway explains that macro bottoms cannot be precisely timed and cites Paddle's proprietary platform data showing leading indicators pointing toward continued near-term contraction.

 Nathan holds their own ▶ 15:17 Targeting Economic Recovery Timing

Nathan Latka cuts straight to the foremost question facing SaaS founders by directly pressing on the projected macroeconomic recovery timeline.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Macroeconomic SaaS Trends and Market Headwinds 0000 Solo conference talk presentation by Tripp Brockway outlining macroeconomic trends, customer acquisition cost spikes, and rising churn rates across 40,000 SaaS companies. Host is not present during this monologue.
The Imperative of Focus and Operational Distractions 0000 Presentation monologue outlining operational distractions and the imperative to focus sales positioning strictly on high-converting target profiles. Host does not participate.
Driving Expansion Revenue with Multi-Product and Add-ons 0000 Monologue covering multi-product expansion, cosmetic and localized payment methods, European pricing power, and VAT compliance risks. Host is not present.
Pricing Strategy: Quarterly Iteration and Pricing Committees 0000 Monologue detailing quarterly pricing iterations, pricing committees, voluntary vs involuntary churn dynamics, and cancellation psychology prompts. Host is not participating.
Interactive Audience Q&A on Retention, Macro Outlook, and Localization 1110 Host Nathan Latka asks a single broad macro recovery question, which Brockway humorously deflects before giving a data-backed cautious outlook. An audience member then asks about deep content localization versus checkout localization.

Statements from this episode (19)

Assertion Not checkable as stated
Brockway: B2C SaaS Growth Flatlined in Recent Months
“What we've seen here is that growth is very much flatlined in, in the past couple months especially.”
Tripp Brockway May 23, 2023 ▶ 1:47
Assertion Not checkable as stated
Brockway: B2B SaaS Churn Up 1.5 Percentage Points Over 2.5 Years
“When you look at it from a B to B perspective this trend also continues mostly in the form of churn. So this chart's a little busy, but basically churn is up a whole point and a half relative to two and a half years ago.”
Tripp Brockway May 23, 2023 ▶ 1:54
Assertion Not checkable as stated
Average SaaS Category Has 15x More Competitors Than Five Years Ago
“Over the last five years. Average competitors in a given industry in SaaS is up 1515, 16 X.”
Tripp Brockway May 23, 2023 ▶ 2:29
Insight
SaaS Companies Keeping 12-Month-Old Sales Messaging Have a Problem
“If it's the same as it was 12 months ago, you've got a problem.”
Tripp Brockway May 23, 2023 ▶ 5:21
Disclosure
Paddle Stops Selling to Every SaaS Company, Targeting a Tiny Subsection
“So at Paddle, for instance, we were selling to every SaaS company. We've stopped doing that. We are selling to only a very small subsection of the market right now, and we're basically saying no to everybody else.”
Tripp Brockway May 23, 2023 ▶ 5:51
Assertion Not checkable as stated
Top SaaS Companies Generate 20%+ Revenue from Existing Customers
“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.”
Tripp Brockway May 23, 2023 ▶ 6:27
Assertion Not checkable as stated
Multi-Product SaaS Companies Grow 30% to 50% Faster
“Companies that do this grow at 30, 50% faster rates than those that have a single product.”
Tripp Brockway May 23, 2023 ▶ 7:07
Assertion Not checkable as stated
Product Add-Ons Increase SaaS Customer Lifetime Value by 18% to 54%
“But companies that do this well have 18 to 54% higher lifetime value when they have at least one add-on.”
Tripp Brockway May 23, 2023 ▶ 7:25
Assertion Supported
Asana S-1 Shows 40% of Revenue Growth from International Markets
“If you look at Asana's S-One 40% of their revenue growth was from international and it grew at a faster rate than their U.S. Volume did.”
Tripp Brockway May 23, 2023 ▶ 7:51
Assertion Not checkable as stated
SaaS Companies Offering 25+ Currencies Grow 25% Faster
“Adding multiple currencies, companies that do that grow 12% faster. Those that have a lot of currencies, 25 plus, grow 25% faster.”
Tripp Brockway May 23, 2023 ▶ 8:36
Disclosure
60% of Paddle's Software Transactions in Germany Use PayPal
“In Germany, most people like to use PayPal to buy software. Kind of blew my mind when I learned that, but 60% of our transactions from Germany are done via PayPal.”
Tripp Brockway May 23, 2023 ▶ 8:56
Insight
Western European and Nordic Buyers Pay 20% Higher SaaS Prices
“Companies in the Nordics and Western Europe are willing to pay 20% higher prices for the exact same product relative to the U.S. So, go increase your price by 20% in Western Europe and watch your conversion rates stay the same.”
Tripp Brockway May 23, 2023 ▶ 9:22
Assertion Not checkable as stated
SaaS Companies Using Tax-Inclusive Pricing Grow 15% Slower
“Companies that are, quote, tax inclusive, meaning they're just adding tax to their price, instead of showing it as a different line item, grow at 15% slower rates.”
Tripp Brockway May 23, 2023 ▶ 10:19
Insight
Paddle Recommends SaaS Companies Change Prices Once a Quarter
“We recommend you change your prices once a quarter.”
Tripp Brockway May 23, 2023 ▶ 11:02
Insight
SaaS Companies Should Form a Committee to Review Pricing Monthly
“Second thing is have a pricing committee. So having a group of people come from products, sales marketing, probably your CEO, who are responsible for price and look at it monthly.”
Tripp Brockway May 23, 2023 ▶ 11:12
Assertion Not checkable as stated
Involuntary Churn Accounts for Around 40% of Total SaaS Churn
“Often it's like around 40% of total churn, and folks tend not to think about it.”
Tripp Brockway May 23, 2023 ▶ 11:52
Assertion Not checkable as stated
Nostalgia Prompts in Cancellation Flows Reduce Churn by 10% to 25%
“Doing something as simple as that, as prompting them to think about the positive we've seen can reduce churn by 10 to 25%.”
Tripp Brockway May 23, 2023 ▶ 13:06
Assertion Not checkable as stated
Checkout Conversion Rates Vary Up to 50% Based on Localization
“The buying experience is what we're normally thinking about and that does matter. And we see, like, we've seen rates vary as much as 10% up to 50% on a checkout.”
Tripp Brockway May 23, 2023 ▶ 17:14
Assertion Not checkable as stated
SaaS Companies Lose Up to 15% of Revenue to Payment Failures
“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.”
Tripp Brockway May 23, 2023 ▶ 17:42
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