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Running Costs of a SaaS app

278 pointsby janpioover 8 years ago

16 comments

patio11over 8 years ago
Worth noting: costs for people blow costs for software&#x2F;services out of the water. I was notoriously spendthrift with regards to SaaS services (&quot;gotta catch them all!&quot;) and spent ~$3 on people last year for every $1 on services. (And if I had had any FTEs that would have been substantially higher.)<p>Over ~10 years running SaaS apps I generally managed to pretty consistently find ways to spend 40% of revenue.<p>Also worth noting: as you get further from &quot;things which are made by devs-running-businesses-as-hobbies-for-devs-running-businesses-as-hobbies&quot; towards &quot;business inputs sold by businesses to businesses&quot; costs <i>skyrocket</i>. You&#x27;re going to spend plural thousands of dollars on bookkeeping and tax compliance every year. You will eventually need a contract reviewed; that will probably cost you a few hundred bucks. You&#x27;re going to get a business insurance policy; you&#x27;ll find the bidding starts at a grand. etc, etc
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destroytodayover 8 years ago
:waves: Hi, I&#x27;m the founder of Cushion. I&#x27;d be happy to answer any questions about our running costs or transparency. (Thanks for posting, @Sujan!)
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biotover 8 years ago
Tip: if you&#x27;re reading this on your phone, switch to landscape orientation to reveal a bunch of detail that&#x27;s otherwise hidden. Then switch to a tablet&#x2F;desktop to see even more detail. It&#x27;s a shame the responsive design removes columns on smaller screens rather than finding another way to present all the information.
tickthokkover 8 years ago
I wanted a &quot;total total&quot; and calculated it. For the curious: $17,593.10.<p>Obviously not all months are equal, but that&#x27;s about $517.45 per month.<p>Look like an awesome tool!
potato122over 8 years ago
First, thanks for boldly sharing. It&#x27;s quite an accomplishment to finish anything.<p>You guys definitely spent a lot where it doesn&#x27;t count ($2k for a cool secondary domain, $1-2k for fonts and SSL, ...), but if you&#x27;ve made it all back then good job forget I said anything.<p>appname+app.com was probably not the best idea. Domain name hacks are confusing, and you are now indirectly working for appname.com<p>A startup&#x27;s name means everything and nothing. All that matters is that it&#x27;s short, relevant and memorable. clownmaker.com will always be better than clownapp.com<p>Alright I&#x27;m done with the unwarranted advice. Really good job.
catapaultover 8 years ago
It&#x27;s surprising to see the cost of Intercom compared to everything else on the list.<p>We recently reviewed how much it was costing our business, compared to the value we were getting out of it, and switched to a cheaper (and simpler) solution.
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yokisanover 8 years ago
For Stripe analytics, Profitwell is free. And awesome.<p><a href="https:&#x2F;&#x2F;www.profitwell.com" rel="nofollow">https:&#x2F;&#x2F;www.profitwell.com</a>
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sly010over 8 years ago
This info is actually very useful for me as it confirms my (rational) fear of accumulating expenses. It&#x27;s way too easy to just spend $10-$50 here and there and before you know it you are spending $1000 a month, while the core service is still running on a single triad of web-server&#x2F;worker-server&#x2F;database-server combo with no redundancy.<p>On the other hand it probably contains everything I could think of and it&#x27;s still only ~$1000 a month, which is not a lot if you work as freelancer and run your SaaS on the side.
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machbioover 8 years ago
Is it really important to distinguish your web application with another font - looks like he spent $500 on Web fonts, which is a lot for a startup ?
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rlocover 8 years ago
Why not switch to &quot;let&#x27;s encrypt&quot; for SSL certificates. It&#x27;s free !
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helpsiteabout 8 years ago
The cost of SaaS apps can really start to add up. What&#x27;s interesting is that there&#x27;s a very similar &quot;stack&quot; that almost all SaaS apps need to buy from other SaaS apps, and many of them don&#x27;t have a free alternative.<p>There exists a whole class of apps&#x2F;services that could gain a lot of traction by providing a freemium model. By becoming one of the best solutions AND having a free version (for limited use), I think you have a better shot of becoming part of a new bootstrapped SaaS business&#x27; &quot;default stack&quot;.<p>This is why we gave HelpSite.io [1] a free version that includes features that I consider &quot;necessary&quot; for any business no matter how small, even when most of our competitors are charging for some of them. The more you can align with a startup&#x27;s own business model (e.g. they need lots of light services up front even when they have no revenue; later they will have revenue and use those services more heavily) the better off you will do.<p>1. <a href="https:&#x2F;&#x2F;helpsite.io" rel="nofollow">https:&#x2F;&#x2F;helpsite.io</a>
m3kw9over 8 years ago
What do you guys actually do?
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nutancover 8 years ago
Didnt see any pricing info for your voice infrastructure. Was it a conscious choice to not go for a business phone system?
ptrptrover 8 years ago
So overall 17,593.1 USD for 3 year of maintenance? Nice job! What are actual cost of hosting cushion, GitHub Pages can seriously host this whole thing?
altern8tifover 8 years ago
Am I reading it wrong or are you just using&#x2F;paying for Slack for a single user?
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uladzislauover 8 years ago
Definitely not lean. From the first look - too many tools and expenses for unknown no name startup. I&#x27;m wondering how much of these can be painlessly cut off?
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