Stephen Ngo of Paddle explains macroeconomic patterns in subscription businesses.
Insight
Monetization and retention offer significantly higher revenue impact than acquisition
“We gather data on what they're spending time on, and we basically found that you know, there's way more impact on spending a bit more time on monetization, a bit more time on retention, compared to spending time on acquisition.”
Opinion
Gumroad mishandled communicating its past price increases to users
“You know, I think we can all think of companies like Gumroad that have, you know, not gotten this quite right in the past.”
Assertion Not checkable as stated
Paddle data shows B2C subscription growth flatlined in late 2022
“And we basically saw that you know, growth in the B to C market basically flatlined starting late last year.”
Assertion Not checkable as stated
Paddle data shows B2B SaaS growth slowed significantly in mid-2022
“And what's interesting is that, you know, starting, say July, August last year, we actually started to see Growth slow down a lot in the B to B space.”
Assertion Not checkable as stated
Early-stage founders focus entirely on acquisition while guessing on pricing
“And inevitably, we hear that people are spending almost all the time on that sales and marketing stuff, especially at the founder stage, right? Spending almost all their time, they mostly guest on their pricing work, and they're not really working to gather da…”
Insight
Lack of a dedicated pricing committee stalls company momentum
“If, you know, no one owns pricing, then you never get any momentum. And if everyone owns pricing, everyone has complaints, everyone gets into arguments, you never get any momentum out of it. So, not having a pricing committee of a designated people to work on …”