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SaaS, Subscription, and On-Premises Software - Don’t Confuse Subscription with SaaS

You hear the terms SaaS, subscription, term licenses and perpetual license software tossed around frequently. The terms aren’t universally understood, nor are the implications of each on the financial model of a company, so the following is an effort to provide an overview.

September 13, 2018

Timing Cashflows of Your Sales Commissions and Your Customers

Your sales team is starting to close some terrific accounts. As your startup grows, your sales team will experiment with different sales techniques.

September 11, 2018

The Limitations of Data and Benchmarks

Numbers provide us a certain certainty. With their precision, they offer a sense of black and white, in or out. But, data and benchmarks alone aren’t enough. All the quantitative analysis in the world won’t lead me to the next great idea for startup. Those figures can’t create empathy, develop the right culture, or hire the right people.

September 6, 2018

SaaS Finance – A Strategic Asset

Good SaaS CFOs manage increasingly complex organizations and responsibilities. The Finance organization has grown to be one of the strategic assets of a SaaS company, managing the numbers, planning for growth, contributing to strategic changes in Sales, Marketing and even R&D, not to mention closing the books every month, quarter and year.

September 5, 2018

Driving SaaS Customer Acquisition w/Success Metrics

As a SaaS business matures, the importance and value of SaaS metrics increase. Most SaaS businesses begin their journey down the SaaS metrics path by tracking recurring revenue in relation to customer acquisition costs. After building a solid customer base, churn becomes a priority.

August 30, 2018

Labor Day Data and Statistics for 2018

In honor of the last, hot days of summer and our love of Labor Day data and statistics, we dedicate this content to Labor Day in the U.S. on Sept. 3rd.

August 29, 2018

Defining SaaS Customer Acquisition Cost – The Devil’s in the Details

SaaS customer acquisition cost (CAC) is one of the key indicators to define a profitable SaaS business model. The difference between customer acquisition cost and the lifetime value of a customer defines the value of the business.

August 23, 2018

Sales Enablement Tools Are the Keys to Making More Money

Over the last several years, many technologies have been developed to help accelerate and automate the sales and marketing functions.

August 21, 2018

Why Public SaaS Financial Benchmarks for Sales and Marketing Expense Don’t Tell the Story

Fifteen years ago, software company financial plans followed standard guidelines about sales and marketing expense targets. Traditional software sales and marketing expense aimed for 22%-25% of revenue, maybe 28-30% if strong revenue growth warranted it. Anything north of that required a really good explanation for why and how the numbers would be reduced. SaaS financial models have thrown those benchmarks out the window.

August 17, 2018