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Saas or not saas ? That is the question
Thank you for the insightful content! I have a critical business dilemma and would greatly value your perspective: One of my few but important SaaS clients insists on owning the code and solution to eliminate competition. I see three options: 1) Refuse and stick to the SaaS model with other clients, risking losing this key client. 2) Agree to share some intellectual property to protect her while maintaining my ability to serve others. 3) Sell my company to her. Could you help me clarify the best path forward for my company’s future? Thank you so much!
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New comment 26d ago
Pricing Teardown: Elvium.com
Hey there So we have a teardown of Elvium.com - a recruiting software doing about €500K in ARR, €4K ACV, growing 10% a year and with 12.5% churn. 51min video below 👇 The math goes like this: - 10% growth at 12.5% churn = €110K new ARR per year. - +€110K ARR per year / 12.5% churn rate = they will cap out at €880K ARR and stop growing (I said €800K in the video). Here is the proposed fix: - Bundle almost all current modules into a 'core tier', forcing base price up from 10K to 25K (DKK - about €1200 and €3200) = provide more to all customers. - Fence and split into 'Direct' and 'Recruiting' (didn't say this in the video, but Recruiting can be offered at a lower base fee and lower price per recruit, as their volume is way larger). - Build out 2 extra tiers - e.g. 'Marketing' and 'Enterprise based on jobs to be done. - Add various services and add-ons besides onboarding - e.g. 'Premium Support', 'Reporting', 'Whitelabel' etc. Results should/could be: - Increase ACV from €4K to about €7K (but keep price for larger accounts almost the same). - This LTV/CAC should go from 5.7x to about 10.0x, - Churn should actually go lower after an initial shake out - could be from 12.5% to 10%. - This will allow Elvium to double marketing spend (without the same risk of driving metrics unprofitable) and get 3.5x the inflow = €380K or so. - At 10% churn the new 'cap out' level is €3.8M, but can of course be even higher with even higher CAC spend. Big assumption is that the team manages to value sell a more 'all in' base package and value proposition to the customers. But at least now the packaging and pricing will support it. Good luck to you guys!
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New comment Oct 21
Pricing Teardown: Elvium.com
Teardown: Reetro.io
Hello everyone! This is the first teardown - @Eddy T. is one of 3 cofounders of Reetro.io, a tool to do better Retrospective meetings during agile development sprints. They have an inflow of 20.000 users a month... but are not making any serious money. We solve that for them in this 51mins long video (sorry about that - I'll practice doing it a bit faster). Overall: 1) Realise that you have 2 conversion points: Registered-> Active and Active->Paid. 2) Freemium: Reduce 'volume' but increase adoption-driving functionality. 3) Feature differentiate Pro and Enterprise tiers. 4) Increase prices. A lot. 5) Do things that don't scale: like talking to customers. You are sitting on a goldmine here, with that inflow. No reason you shouldn't be able to scale this to $1M in about 3mths. Do you want to be 'torn down'? - Take a look at the teardown thread in the community forum here! Finally: comments and discussion welcome in the tread below. Video on youtube: https://youtu.be/B423wC111TI
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New comment Oct 20
Teardown: Reetro.io
Teardown of Aumico.io
Hi guys Find below a 38min video teardown of Aumico.io - a financial statement / consolidation solution for accountants. I've done 3 such projects in the past, including quite a bit of competitor research in this market. My advice to Aumico (the short version): 1) Consider selling to banks - they have a far more valuable use case for your solution. 2) Consider a Freemium over your current trial. 3) Don't split out new functionality in additional modules - keep it in and raise prices. 4) Add services to the mix - both one-off onboarding and ongoing year-end support. You can see the full email from Chris /Aumico below - and thank you to that team for playing along! Let me know what you think in the comments - did I get it right? Something you would have done differently? Do you have any advice for Chris on how to grow this? /Ulrik ----------------------- A) You will find our pricing here: https://aumico.io/en/accountant/ For example, you are an accountant with 35 clients. You will buy a license for each client. ( 35 x 65 CHF = CHF 2'275) licenses will be renewed automatically. B) 1) We simplify year-end closing for accountants. Our main target group is accounting companies in the DACH region. We currently have one Modiul but soon launch the next one. 1. Modul 1:  financial statements engine (existing) The pricing above relates to this service 2. Modul 2: financial closing: documentation of financial statements (will be released on October 15th, 2024 (The pricing is not determined yet. Idea is to duplicate the existing 3. How we do sales: Outbound mailings, push into the trial period and convert (own sales org.) 2) Metrics 1.  ARR= CHF 282'000 2. 140 customers 3. Churn rate: 5% 4. Annual growth rate: not sure how to calculate correctly. 5. 2021: CHF 14'000, 2022: CHF 122'000, 2023: 226'000) 3) Goals 1. Increase revenue 2. Increase average deal value 3. make pricing simpler for the client and us
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New comment Oct 20
Teardown of Aumico.io
Intellectual Property ownership for SaaS Startups?
Hi Everyone I wonder if you have experiences or opinions about the importance (or not) of having copyrights or patents (or alike) finding funding for a B2B SaaS startup. I understand it is "better", but is it a necessity? Or.... it depends. My case is scaling something that is working. The application enables pricing/selling more value based in traditional industries, extremely fast, tested/used in Field Service. Scaling means getting people on-board (further development, marketing/sales), and financing. If very valid, any sources where I can learn more about Intellectual Property? Should this be one of my top priorities? Is there any other alternatives? With a Smile, JJ
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New comment Oct 7
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