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Milestones for SaaS Companies

28 pointsby ivoloover 10 years ago

3 comments

lunaruover 10 years ago
This article must have been written with an implicit ARPU in mind. For lots of low ARPU companies, milestone 1 and milestone 2 are going to be inverted. That is, you&#x27;ll likely get 10 paying customers before finding true product market fit.<p>Also, likewise, hundreds of customers will not equal $1M ARR for lots of SaaS companies. Even at 1000 customers, you&#x27;d need ~$100&#x2F;mo or greater subscription price.<p>For SaaS companies with &lt; $100&#x2F;mo pricing, the equations and milestones are very different. For example, a $30&#x2F;mo ARPU means having to get 3x more customers. So suddenly, hundreds of customers are not enough, you need thousands. That can mean the difference between a direct sales or white glove treatment to something slightly higher scale.
xivzgrevover 10 years ago
I enjoy reading how he quantifies pm fit - different people have different approaches. Another guy, can&#x27;t think of his name, said 40%+ would be &quot;very disappointed&quot; if business shut down. Think they&#x27;re all useful signals.
molfover 10 years ago
I find it hilarious that &quot;profitable&quot; is the last milestone.
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