This week’s SaaS roundup features brilliant new growth strategies, SaaS metrics you didn’t know you needed the best SaaS products this year and more! Let’s get started…
In this article, Blossom Street Ventures co-founder Sammy Abdullah discusses the value of Contribution Margin—or as he calls it, “the best metric in SaaS”. According to Abdullah’s findings, only 9 publicly traded SaaS companies mention this relatively unknown metric in their public filings. But in spite of it’s unpopularity, he claims this metric is imperative for understanding the health of your SaaS business. We think he’s onto something.
Contribution margin is difficult to measure, but an imperative metric for understanding the health of your SaaS business. Make sure you monitor it for each customer cohort annually.– Sammy Abdullah
This article poses a very important question and provides some equally important answers, but it’s the thought-provoking and informative journey in between that makes this article roundup-worthy. SaaS Captial‘s Rob Belcher shares observations on channel sales strategies collected from a recent portfolio company CEO roundtable, as well as charts built from survey data gathered annually from 950 private B2B SaaS companies. And if that sounds like too much of a mouthful, Belcher closes the article with 4 key takeaways for readers skimming for highlights.
The key takeaway from the survey data and portfolio company experiences is that partner programs are more common and make up a larger percentage of total revenue among companies with a horizontal product than for companies selling a vertically oriented solution.– Rob Belcher
Tomasz Tunguz is known for his unique perspective on common SaaS topics as well as his knack for introducing groundbreaking concepts to the greater SaaS community. Last Monday saw Tunguz publish an article that ties the two sides of his blog together in a fantastic 3-step guide to selling your product while you build it. In this 2-minute read, Tunguz outlines how to properly execute this strategy, and warns readers of the pitfalls they may encounter along the way.
Customers will pay you to build your SaaS product. It’s one of the great advantages of a SaaS model. Annual prepay contracts – wherein customers pay for a year’s cost on day – is a free loan from customers. And every startup can benefit from this advance. There’s only one requirement: you must be able to sell your product while you’re building it.– Tomasz Tunguz
Last week, Saasy Digital shared their list of the highest revenue-generating SaaS companies and fastest-growing startups of 2019, and included details, statistics and evaluations from each company listed. How many of these SaaS products do you use each month?
Unless you’ve been living under a rock, it’s hard not to notice that software-as-a-service (or SaaS) is one of the most popular business models in the world today. In a highly competitive space, only the best will stand out.– Tyler Horvath
Lifetime Deals aims to put together the definitive guide to the best SaaS apps across many categories in the coming months, and started off strong last week with the inaugural article of the series. The writers of the Lifetime Deals blog reached out Workbrighter, Cordial and more for recommendations on their favorite SaaS business management apps and compiled a list of the top 11.
Business management can be a bit of a juggling act. You don’t want to then have to juggle lots of different business management apps too. So how do you pick just one? Well, you get someone to make the decision for you.– Lifetime Deals
Not just anyone, though. You want to ask the people who know SaaS apps inside out: the SaaS professionals themselves.
That’s it for this week’s SaaS roundup! We hope to see you back here next week. Same time, same place.