SaaStr

MARCH 6, 2024

Split Sales Team Managing SMB Accounts Into 2 Teams, One on New Business and One on Upsell It’s interesting to see Okta do this a bit later in life than some, but it makes a ton of sense given the current macro environment. Their multi-million dollar contracts are 30%. #5. So it makes sense, where practical, to split the teams here.

Fractional VPE 287

Fractional VPE Part-Time VPE Scale SMB 287

SaaStr

FEBRUARY 17, 2021

While their core web site “Creative Subscriptions” are growing at a still impressive 23% year-over-year, their Business Solutions segment with ecommerce and more are growing 60% year-over-year at $200m in ARR. Efficient at SMB marketing — an ~8 month CAC. Efficient at SMB marketing — an ~8 month CAC.

Payment Methods 312

Payment Methods Payment Solutions Payments SMB 312

SaaStr

MAY 8, 2021

Squarespace is at $700m ARR and has 3.7m “unique subscriptions” although it’s unclear how many unique customers that is. Wix is at $1B ARR, worth $15B and added 1 million new subscriptions in 2020. Both it and Wix are a bit murky on customer count vs “subscriptions”, but those are the data we have. More here. More here.

SMB 294

SMB SaaS Subscription Payment Features 294

SaaStr

OCTOBER 11, 2023

Overall subscription solutions revenue is up just 21%, while payments and merchant solutions are up 35% — from a much, much larger base. #2. But the explosion of SMB commerce and the price increase to the SMB Shopify plans has meant Plus revenue growth hasn’t outpaced the overall growth of the company’s SMB base.

Payments 298

Payments Merchant Services Revenue Payment Solutions 298

SaaStr

MARCH 28, 2025

SMB customers. Your suppliers might actually be your customers 30% of Bill.com’s core revenue comes from suppliers making payment choices, completely reframing their TAM calculations. They expect products to be more elegant and integrated, with features like payments, workflow, and AI.” From Zero to $1.4

SMB 130

SMB Payments Payment Services SaaS Payments 130

SaaStr

APRIL 17, 2021

Monetizing ecommerce via subscriptions, but not payment processing. Rather, it charges for software subscriptions to take payments on its websites. It’s very helpful to see this called out for SMBs, and is pretty low for a public SaaS company. But perhaps not that uncommon for higher-churn SMB categories.

Payment Methods 338

Payment Methods Merchant Services Payments Payment Services 338

SaaStr

AUGUST 28, 2024

And with that, it seemed a good time to dig in with one of the great SMB leaders Bill. With a super impressive 111% NRR from SMBs. Only 20% of Revenue from “SaaS”, 80% From Transactions and Float (Fintech) Bill started off 100% SaaS, and slowly and deliberately added payments. Grab the final tickets here!!

Payments 297

Payments Payment Solutions SMB Acquisition 297

SaaStr

APRIL 8, 2020

Click here for ChartMogul’s free-forever launch plan that will give SaaS businesses access to the world’s first subscription data platform so they can analyze and improve key metrics like MRR, churn and LTV. Hiver’s Free Shared Inboxes for SMB. What are they all about? What are they all about?

Artificial Intelligence 307

Artificial Intelligence Machine Learning SaaS Consulting 307

SaaStr

NOVEMBER 19, 2020

Subscriptions can fuel payments and merchant revenue. As more and more SaaS apps add a payments element, that payments element can really scale over time. As more and more SaaS apps add a payments element, that payments element can really scale over time. You can be both SMB and enteprise consistently.

Payments 363

Payments Merchant Services Payment Solutions Scale 363

SaaStr

JULY 14, 2020

It may be the most successful SMB-focused app of our current generation. If they churn at the end of a yearly subscription, or 6 months into a monthly one, they’re still gone. Let’s take a look at Zoom. Zoom is even crazier now of course, but Zoom was growing > 100% at $500m in ARR, in an already well-established space.

Pricing 306

Pricing Scale Payment Solutions SaaS Payments 306

SaaStr

NOVEMBER 2, 2022

The core product is very B2C, but the upgrade to paid has very SMB B2B metrics, and 80% of the revenue is subscription based. So it’s doing what Wall Street wants today. But is Duolingo SaaS? Well, it’s SaaS-ish. So at a minimum, it’s a good one to learn from, especially in this PLG and freemium world.

Scale 321

Scale B2C SMB B2B 321

SaaStr

APRIL 19, 2023

One leader in SMB commerce is Lightspeed Commerce, founded way back in 2005. And their mix of software, payments and hardware revenue drives up the total deal size — but puts a lot of pressure on margins. Software subscriptions are only growing 9%, vs. 41% for payments / transaction revenue. #2.

Payment Solutions 289

Payment Solutions Point of Sale Payments SaaS Payments 289

SaaStr

DECEMBER 14, 2020

Folks churn out of their Verizon plan, their Netflix subscription, etc. In a low-end subscription model for a tool, not a solution (e.g., Churn is a good term for your SMB and freemium customers. semi-commodity storage, semi-commodity hosting, etc. the dynamics are similar. Like Verizon.

Churn 362

Churn Sales Hiring Systems Review B2C 362

Tom Tunguz

SEPTEMBER 17, 2012

SMB SaaS companies cannot afford to pay for distribution. At 2 to 4% conversion to paid rates and $5 to $10 monthly subscription fees, the breakeven CPC for these products on search is $0.40. The most successful SMB SaaS companies (Zendesk, Expensify, Square) build communities to drive distribution.

SMB 100

SMB SaaS Branding Subscription 100

Tom Tunguz

AUGUST 2, 2016

Channel distribution represents one of the biggest and most important changes in customers acquisition for SMB SaaS startups in quite a while. One of the most interesting examples is Microsoft’s Office 365 SMB business. It’s the most successful SMB SaaS acquisition channel ever built. by Thomas Hansen.

Outsourcing Services 113

Outsourcing Services SMB Acquisition Scale 113

SaaStock

JANUARY 25, 2019

Its focus is on helping companies handle financial routine and streamlining processes related to accounting, banks, stock, and electronic invoicing, among others. Omie main goal is to bridge the efficiency gap in Brazilian SMB, helping customers to be more prosperous. The tool supports multi-currency billing and electronic invoicing.

SaaS Payments 257

SaaS Payments Payment Solutions Payment Methods Payments 257

Tom Tunguz

APRIL 16, 2013

At first glance, SMB SaaS companies, those who sell Software-as-a-Service to small to medium businesses, may seem like any other software company. Successful SMB SaaS companies have reinvented their businesses eschewing the expensive enterprise sales model in favor of end-user centric marketing, support and product development.

SMB 100

SMB Scale Startup SaaS 100

SaaStr

DECEMBER 27, 2020

Those of us who’ve been around a while think of New Relic as a freemium and almost SMB tool, but today 77% of their revenue comes from accounts greater than $100k. In New Relic’s case, moving from subscription to consumption based usage has increased net revenue 15%. The multiples just don’t support it.

Scale 342

Scale Outsourced Development SMB Cloud 342

Tom Tunguz

JANUARY 26, 2021

Then, consumer subscription businesses began pitching using ARR. After all, there’s not much difference between an SMB paying monthly and a consumer paying monthly.

SMB 279

SMB Startup Trends Payment Features 279

FastSpring

SEPTEMBER 16, 2022

With over eight years of experience in SaaS, the large majority of which are within SaaS payments and billing, Tony is constantly immersed in growth driven projects and dialogues with SMB and Enterprise SaaS companies looking to scale. No matter what your business model, we meet you where you are. About FastSpring.

Pricing 146

Pricing Payment Solutions Payment Services Scale 146

Tom Tunguz

APRIL 25, 2012

On first glance, SMB SaaS companies, those who sell Software-as-a-Service to small to medium businesses, may seem like any other software company. SMB SaaS companies sell to a radically different market than enterprise software companies. On the other hand, SMB SaaS companies sell to firms with 10 employees and $400k in annual payroll.

SMB 100

SMB Scale SaaS compliance 100

FastSpring

JANUARY 27, 2022

Note: FastSpring offers advanced subscription management services that support free trials, monthly and annual paid plans, proration, discount management, and more. How Castos upsells subscription tiers. His podcast hosting company uses data analytics that looks at which users are most likely to grow out of their current subscriptions.

Merchant Services 146

Merchant Services Payment Services SaaS Payments Payment Solutions 146

SaaStr

APRIL 28, 2019

All the great SaaS companies IPO’ing now have strong revenue retention, whether SMB or enterprise focused. Revenue Retention / Net Negative Churn of 143%. A continued them of our 5 Interesting Learnings Series. Not burning that much cash. Yes, Slack has not been as efficient as Zoom. Again, having a viral app helps a lot here.

Scale 279

Scale Venture Capital SMB Enterprise 279

SaaStr

NOVEMBER 28, 2022

was pretty simplified, mostly made up of annual or monthly subscriptions. From 2010 until 2015, the SaaS world was becoming more complex with the introduction of static bundles and recurring revenue as an addition to the annual/monthly subscription model. Era 2, SaaS 2.0: Era 3, SaaS 3.0: New service offerings.

Scale 246

Scale Finance Sales Hiring Scaling 246

SaaStr

MARCH 8, 2024

Should it be subscriptions, usage, solutions, or something entirely different? The most common pricing models are: Subscription — per seat or user, freemium, per product with add-ons Consumption — how much you’re using. If so, keep a simple subscription model. Snowflake is a symbol of usage-based pricing.

AI 273

AI Artificial Intelligence Pricing SaaS 273

Clouded Judgement

JUNE 19, 2024

For businesses selling predominantly to SMB customers, these benchmarks are all slightly lower given the higher-churn nature of SMBs. I consider >120% best in class for companies selling to SMBs (like Bill.com). To calculate implied ARR I take the subscription revenue in a quarter and multiply it by 4.

Cloud 318

Cloud GCP(Google Cloud Platform) Software Azure 318

Stax

APRIL 3, 2025

Integration capabilities Since you probably have other tools in your tech stack, you dont want to keep switching tabs or windows to reconcile invoices or transfer data. Look for an eCommerce payment system that offers plug-and-play integrations with your existing tech stack to minimize development costs.

Payment Methods 88

Payment Methods Merchant Services Payment Solutions Payment Services 88

SaaStr

FEBRUARY 14, 2023

Net Dollar Retention Shows SaaS’s Best Qualities NDR encapsulates SaaS revenues’ best qualities in one metric: the subscription-based model. For SMB-facing companies, over 110% should be your goal. It’s critical to show investors that you’re bucking the trend of many companies today that generate less demand and aren’t hitting numbers.

Metrics 264

Metrics Marketing SaaS SMB 264

SaaStr

JUNE 27, 2019

It may be the most successful SMB-focused app of our current generation. If they churn at the end of a yearly subscription, or 6 months into a monthly one, they’re still gone. This removes friction from the sales process, leading to a higher and faster close rate. Let’s take a look at Zoom. Zoom does not play games.

Pricing 193

Pricing SaaS Payments Payment Solutions Payment Services 193

Stax

DECEMBER 20, 2023

Since we’ve spoken a lot about credit card processing before, today we’ll take a look at how to find the best credit card processor for your SMB in 2024. Since the big players in the landscape generally all offer a robust set of services, data shows that most SMBs are satisfied with their payment processors and aren’t likely to switch.

Payment Services 88

Payment Services Merchant Services Payment Methods Payment Features 88

FastSpring

OCTOBER 18, 2018

In other words, we are now in an era of subscriptions, in which businesses are progressively moving towards subscription-based business models. With subscriptions poised to disrupt the traditional business model, it’s only natural for you to wonder if offering a subscription model can benefit your business.

Payment Features 68

Payment Features Payment Services Subscription Payment Methods 68

Stax

APRIL 11, 2024

SMB owners wear many hats, managing everything from staff to sales. Adding to the already tough job of managing a small or medium business is the complex task of understanding how payment processing works, including managing the fees, equipment, accounts payable and more. Learn More What is a Payment Management System?

Payment Services 88

Payment Services Payment Solutions Merchant Services Payment Methods 88

Neil Patel

DECEMBER 8, 2020

Clockify – Best Reporting Features Time Doctor – Best for Employee Monitoring Toggl Track – Best for Holding Everyone Accountable TSheets – Best for GPS Monitoring Tick – Best for SMB Time Management. A lot of companies use time tracking software to streamline payroll and invoicing. Monitoring.

Payment Solutions 140

Payment Solutions Software Payment Methods Payments 140

SaaStr

FEBRUARY 9, 2024

From a Go-To-Market perspective, Zapier uses a hybrid model that involves a combination of freemium offerings, subscription plans, and partnerships. They had been building toward an SMB audience, so hiring 50 people in sales against a product that wasn’t ready for a specific audience would’ve been a mistake. At the same time?

Scale 321

Scale Sales Hiring Sales Marketing 321

Sales Hacker

AUGUST 26, 2021

The industry ranges are around six to nine months for MM/Enterprise sales and three to five months for SMB sales businesses. Bookings vs. invoices. As a rep, a comp plan based on bookings is much more beneficial to you than one based on invoices. to choose invoices over bookings, but as a rep, bookings keep things much simpler.

Software Review 122

Software Review Compensation Payment Features Underperforming Technical Team 122

SaaStr

JUNE 1, 2021

I’m going to skip by my life story, and how I grew up as a small child in India, and how the dusty streets influenced my take on unit economics, and SaaS subscription models. Do not…,” and the reason is no one hardly ever has succeeded in building a big business in SMB. I’m paraphrasing… [laughter].

Part-Time VPE 296

Part-Time VPE Technical Cofounder CTO Hire New CTO 296

Neil Patel

DECEMBER 23, 2020

HubSpot CRM – Best free marketing CRM Really Simple Systems – Best free sales CRM Agile CRM – Best free customer service CRM Flowlu – Best for SMB finance Apptivo – Best for basic business management. Some of the better free products also include: Live chat Invoicing VoIP calling Limited sales automation.

Payment Solutions 139

Payment Solutions Software Review Software Payments 139