A high growth SaaS playbook. 12 metrics to drive success. 2 goals, present a simple model to understand SaaS business and show what levers a CEO can pull to get the most impact
Zero to 100 - Part 4: Building a Sales Team - Stephanie Schatz
Zero to 100 is a learning program from David Skok. It is a detailed instruction manual for how to take your startup from zero to $100m, with a particular focus on the area of building a go-to-market machine. So many of today’s founders come from a product or technical background, and have never been involved with sales and marketing. Right after starting their venture, they are hit with the huge problem of how to build their go-to-market organization and processes. It breaks the journey down into 9 steps, and explains why it is crucial not to skip steps in this journey in the rush to get ahead. The major emphasis of the course focuses on building a repeatable, scalable and profitable growth machine. Once you have that in place, you are ready to hit the gas and scale like crazy.
To see videos of the presentations, click here: https://www.forentrepreneurs.com/matrix-growth-academy-zero-to-100-videos/
Describes the steps required to build a Sales and Marketing Machine that is predictable, scalable, automated, well instrumented, and cost efficient.
This was a presentation that I gave at the Lean Startup Circle in Boston on March 24th, 2011.
A High Growth SaaS Playbook - 12 Metrics to Drive Success
Keynote by David Skok, ForEntrepreneurs Blog & General Partner, Matrix Partners, at SaaStock on Tour New York, 20th June 2018, KnockDown Center, Maspeth, NYC
Lean Startup taught the world how to find product/market fit, but in the B2B world that isn’t enough. B2B founders must then find a way to build repeatable, scalable and profitable growth before they are ready to step on the accelerator and grow at high speed. In this talk, five-time serial entrepreneur and author of the ForEntrepreneurs blog, David Skok, breaks this journey down into 9 distinct stages and explains the playbook at each stage. Warning: trying to force growth by skipping a step is the number one mistake entrepreneurs make, and it is often fatal.
Zero to 100 - Part 2: Building a Repeatable, Scalable Growth Process
Zero to 100 is a learning program from David Skok. It is a detailed instruction manual for how to take your startup from zero to $100m, with a particular focus on the area of building a go-to-market machine. So many of today’s founders come from a product or technical background, and have never been involved with sales and marketing. Right after starting their venture, they are hit with the huge problem of how to build their go-to-market organization and processes. It breaks the journey down into 9 steps, and explains why it is crucial not to skip steps in this journey in the rush to get ahead. The major emphasis of the course focuses on building a repeatable, scalable and profitable growth machine. Once you have that in place, you are ready to hit the gas and scale like crazy.
To see videos of the presentations, click here: https://www.forentrepreneurs.com/matrix-growth-academy-zero-to-100-videos/
Something important has changed in the recruiting process: the best people are almost never on the market, and you have to develop recruiting processes to find and sell passive candidates. In many cases, it will take months or years of relationship building with these candidates to find the right moment when they are open to considering a change. Closing them takes greater selling efforts than in the past due to the intense competition over the good candidates. This leads me to believe that there is now a third crucial startup skill that needs to be developed: recruiting.
The document provides guidance on optimizing a company's sales funnel by taking a buyer-centric approach. It recommends mapping the buyer's decision process and addressing all their decision criteria and concerns at each step. Key strategies include removing friction points, adding motivators, and testing for problems through the lens of the buyer's experience. The goal is to design a funnel that delights buyers and keeps them motivated to continue engaging with the sales process.
Zero to 100 is a learning program from David Skok. It is a detailed instruction manual for how to take your startup from zero to $100m, with a particular focus on the area of building a go-to-market machine. So many of today’s founders come from a product or technical background, and have never been involved with sales and marketing. Right after starting their venture, they are hit with the huge problem of how to build their go-to-market organization and processes. It breaks the journey down into 9 steps, and explains why it is crucial not to skip steps in this journey in the rush to get ahead. The major emphasis of the course focuses on building a repeatable, scalable and profitable growth machine. Once you have that in place, you are ready to hit the gas and scale like crazy.
To see videos of the presentations, click here: https://www.forentrepreneurs.com/matrix-growth-academy-zero-to-100-videos/
In this presentation you will find information about importance of Key Performance Indicators (KPI's) for subscription-based (SaaS) Internet startups.
The full list of metrics mentioned in the presentation, exact formulas, and examles you can find at http://datmachine.co/saas_metrics.
If you have any questions, don't be shy to drop me a line on my email: efremov(at)datmachine.co.
Zero to $50M – A Roadmap of the Key Stages, and How to Win at Each Stage
David Skok - General Partner / Matrix Partners
There are seven key stages in a startup’s evolution from $0m to $50m in revenue. Understanding where you are in that evolution, and how to act at each stage is critical for success, as what is appropriate at one stage is not appropriate at another stage. David will lay out the roadmap, and detail the keys to success at each stage.
WebSummit 2018 - The SaaS Business Model & Metrics
SaaS businesses are extremely sensitive to a small number of important variables. If you are running a SaaS company, understanding how these variables drive your business model is crucial to long-term success. In this talk, David Skok, author of the now famous SaaS Metrics 2.0 blog post will talk through those key metrics and their impact on the overall SaaS business model.
There are seven key stages in a startup’s evolution from $0m to $50m in revenue. Understanding where you are in that evolution, and how to act at each stage is critical for success, as what is appropriate at one stage is not appropriate at another stage. David will lay out the roadmap, and detail the keys to success at each stage. The talk is aimed at technical/product founders plus their sales, marketing & product executives who are responsible for the go-to-market strategy for their company.
David Skok, General Partner at Matrix Partners, provides a simple model to understand a SaaS businesses, as well as the key levers founders, can leverage to drive SaaS success.
There is a common problem where startups have an unbalanced business model with too high of customer acquisition costs compared to lifetime customer value. This document discusses the importance of having a well-balanced business model with consideration for cost to acquire customers, monetization and lifetime customer value. It also covers how the internet has shifted power to customers and changed buying behavior, requiring sellers to have an intimate understanding of customers to be successful.
The document discusses business model innovation and key lessons learned from case studies. It emphasizes the importance of balancing the cost to acquire customers (CAC) with the lifetime value (LTV) of customers. Business models that use free trials, freemium options, and viral marketing can achieve low CAC through inbound marketing techniques. Recurring subscription revenue models provide predictability and allow companies to scale through efficient sales processes.
Slides from the Balderton version of my Kiwi SaaS presentation, Metrics that Matter in 2023, designed to talk about which SaaS metrics matter today that, in some cases, were not as important 12-24 months ago.
This document provides an agenda and slides from a presentation on the future of cloud computing and customer success. The presentation discusses key topics including the state of the cloud market in 2017, benchmarks for cloud company growth and efficiency, and a model called the "Helix Model" for driving revenue growth through customer success. The presentation aims to provide cloud company leaders with insights on scaling their business and retaining customers through a customer-centric approach.
David Skok on The SaaS Founder's Journey || SAAS NORTH 2017
http://www.l-spark.com -- Watch the video of David Skok's keynote over on our blog.
David Skok joined Matrix Partners as a General Partner in May 2001. He has a wealth of experience running companies. David started his first company in 1977 at age 22. Since then David has founded a total of four separate companies and performed one turn-around. Three of these companies went public.
David joined Matrix from SilverStream Software, which he founded in June 1996. Prior to its July 2002 acquisition by Novell, SilverStream was a public company that had reached a revenue run rate in excess of $100M, with approximately 800 employees and offices in more than 20 countries around the world.
David’s work as a value added investor is best known for helping HubSpot, JBoss, AppIQ, Tabblo, Netezza, Diligent Technologies, CloudSwitch, TribeHR, GrabCAD, OpenSpan and Enservio to successful exits. David currently serves on the boards of Atomist, CloudBees, Conductor, Digium (makers of the very popular Asterisk Open Source PBX/telephony software), Meteor, NamelyHR, Salsify, Storiant, VideoIQ and Zaius.
In addition to his broad focus on enterprise software, David is specifically focused on the areas of SaaS (software as a service), cloud, mobility, Open Source, marketing automation, virtualization, storage, and data center automation.
David writes a blog for entrepreneurs and startups on topics such as viral marketing, SaaS metrics, building a sales and marketing machine, techniques for lowering cost of customer acquisition, etc. The blog can be found here: www.forEntrepreneurs.com.
Presented by Richard Brooks at the ALC conference in Las Vegas NV. Explores the realtionship/importance of strategic sales management, marketing and key account management. Moves on to present models around the life-time value of clients to an organisation and how this changes as firms develop.
Why It Takes 7-13+ Touches to Generate a Qualified B2B Sales Lead Today
The document discusses why it takes 7-13+ touches to generate a qualified B2B sales lead today. It notes that 73% of leads distributed to sales are not sales-ready, creating problems. It then outlines 11 ways to shorten the lead generation cycle and improve results, including starting with the end in mind by understanding buyer personas; clearly defining "sales-ready" leads; quantifying lead quotas; aligning sales, marketing, and management; improving target data; segmenting markets; using compelling content and offers; emphasizing relationships over automation; and warming prospects first with email or direct mail before calling. Case studies are cited showing the benefits of a multi-touch, relationship-based approach.
This document discusses key metrics for SaaS startup success. It defines 8 important sales metrics: monthly recurring revenue (MRR), bookings, annual contract value (ACV), churn, cash efficiency ratio, magic number, lifetime value to customer acquisition cost ratio (LTV/CAC), and payback period. Each metric is explained with examples and notes on why it is important to measure. Target performance levels are listed for some metrics, such as aiming for a cash efficiency ratio over 10% and LTV/CAC ratio over 3x. The document concludes with a reminder that this list is not comprehensive and mentions some additional factors to track.
Why It Takes 7-13+ Touches to Generate a Qualified B2B Sales Lead Today
1. Generating qualified B2B sales leads takes 7-13 or more touches today because prospects do not provide full information needed for sales qualification in a single interaction and must be nurtured over time through multiple communications.
2. Creating a "perfect prospect profile" that clearly defines what constitutes a "sales-ready qualified lead" can help align marketing and sales teams and improve lead quality.
3. Developing a lead-to-sales requirements calculator based on sales goals can help determine how many qualified leads are needed each month to meet targets.
Convincing Your Boss(es) to Confidently Spend (more) on Advertising
Could your business profit from the scaling of advertisement spend? Wrangling your boss with swagger and tact is not always enough to win larger budgets. The Answer? Arming yourself with a customer-centric strategy, backed by CLV, that can drive a responsible and ‘winning’ conversation with your organization. In this session you will walk away with knowledge and actionable resources so you can:
- Convince your boss how spending more on advertising will benefit your organization.
- Conquer your omnichannel success metrics and their impact on your customer lifetime value.
- Confidently use your data to transform your organization to be more customer-centered.
A detailed look at why SaaS business are so different from traditional software companies, and why traditional ways of looking at their finances fail to understand the business. Provides an alternative set of metrics that show the right way to look at a SaaS business.
For more on the SaaS business model and Metrics, see this blog post:
www.forentrepreneurs.com/saas-metrics-2/
Budgets, Bids and Winning New Business in 2019: How to Allocate Ad Spend Like...
When it comes to online advertising, it isn't about how much you spend, it's about how you spend it.
Should you be spending more on Facebook or Google?
What is the best budget for your industry?
When should you stop putting money behind a poor-performing campaign?
For these answers and more, join our live webinar with our in-house pay-per-click expert.
You'll learn:
- How to use 2018's results to set the best budget for your business in 2019
- What processes you can set up now to keep wasted spend in check all year long
- How to quickly determine which ad types are actually worth putting your budget behind
- What signs you should be looking for when managing your bids
This document provides an overview of the evolution of email marketing from 2016. It discusses how email marketing has progressed from basic batch and blast strategies to more personalized approaches using techniques like consumer journey mapping, segmentation based on recency and frequency scores, and developing long-term engagement strategies. It highlights how the most effective marketers treat their email lists as valuable customer relationships to nurture over time, rather than one-time sales channels. Measurement is also emphasized, with more advanced companies tying their metrics to objectives like lifetime customer value rather than just opens and clicks. The document aims to demonstrate how marketers can maximize the potential of email as a marketing strategy through personalization, long-term engagement, and strategic measurement.
Building Your ABM Marketing-to-Sales Playbook Using Meeting Maker Campaigns.
The biggest change in B2B marketing strategy recently is to shift the engagement model from awareness campaigns to account based marketing campaigns. This flips the funnel and directs marketing to the target account. Learn more.
The document provides tips for managing a virtual insurance agency, including setting clear expectations for producers, tracking key metrics like closing ratios and cross-selling, and setting goals around obtaining referrals and suggestive selling of add-on products to increase income per sale. Implementing these strategies such as asking for one referral per day and suggestive selling one add-on product per policy could result in over $20,000 more income per producer annually.
The document discusses why it takes 7-13+ touches to generate a qualified B2B sales lead today. It provides examples of multi-touch lead generation sequences involving emails, direct mail, phone calls, and webinars. It also presents a case study of a glove manufacturer that implemented a multi-touch, multi-channel campaign involving email, teleprospecting, and two different offers. This led to an average of 4-5 touchpoints required to generate a qualified sales lead, helping the company achieve its sales goals.
Understanding customer acquisition costs - a VC's view
This document discusses understanding customer acquisition costs from a VC's perspective. It addresses challenges in marketing attribution and metrics. It presents a quant marketer's approach to analyzing above-the-line advertising channels like TV. Key points include understanding costs by new vs repeat customers and paid vs free channels, improving attribution models over time, optimizing conversion rates to reduce costs, and testing large TV campaigns to properly measure impact while accounting for factors like branding effects.
Convincing Your Boss(es) to Confidently Spend (more) on Advertising
My Presentation from my Session at HeroConf 2019, in Philadelphia.
This presentation is for anyone who wants to invoke data-decision making and business transformation learning:
1) How to convince your boss to spend more budget on advertising so it benefits your entire organization.
2) How to conquer the proper success metrics, "The Golden Metrics" linked to Customer Lifetime Value (CLV).
3) How to confidently use your data to transform your business to be more customer-centric.
The Incredible Impact of Churn on the Value of Your Company
Did you know? A SaaS company with 5% annual revenue churn will be valued 200% higher than a similar company with 15% annual revenue churn.
It’s certainly no secret that churn hurts recurring revenue businesses, but just how much? Beyond simply reducing the revenue you generate, churn hurts the future value of your customers and, ultimately, the future value of your company as a whole.
Join Gainsight Customer Success Evangelist Lincoln Murphy and Todd Gardner, Founder and Managing Director of SaaS Capital, as they dig into the following key questions on why churn hurts and how focusing on Customer Success can have a dramatic impact on your company’s value. This webinar will specifically cover:
- Valuation Drivers of SaaS Companies
- The Impact of Churn through a Case Study
- Measuring, Comparing and Forecasting Churn
The most successful Enterprise SaaS companies know that growing revenue only through new customer acquisition is the less efficient way to scale. Rather, they understand that growing revenue within your existing customer base - through up-sells, cross-sells, and expanded use - is the most profitable way to scale.
In fact, Enterprise SaaS companies that grow revenue - and company valuation - by expanding revenue within their existing customer base also know the key to making this work is to focus on - and operationalize - Customer Success.
Budgets, Bids and Winning New Business in 2019: How to Allocate Ad Spend Like...
When it comes to online advertising, it isn't about how much you spend, it's about how you spend it.
Should you be spending more on Facebook or Google? What is the best budget for your industry? When should you stop putting money behind a poor-performing campaign?
For these answers and more, join our live webinar with our in-house pay-per-click expert.
You'll learn:
- How to use 2018's results to set the best budget for your business in 2019
- What processes you can set up now to keep wasted spend in check all year long
- How to quickly determine which ad types are actually worth putting your budget behind
- What signs you should be looking for when managing your bids
This presentation starts by looking at the huge global forces that are currently reshaping the world, triggered by Covid. It then drops down layer by layer, to finally show how you need to react as a SaaS business to set up for success in a changed world.
These are the slides that I used in my presentation at SaaStock Remote 2020 on June 10th.
9 Steps to Repeatable, Scalable, & Profitable Growth
In this slide deck, David Skok talks through his 9 step process for B2B startups to get through product/market fit, and to then find a repeatable, scalable, and profitable growth process.
In David's experience some of the most fatal and expensive mistakes founders make is trying to skip steps. Understanding this roadmap will save you countless hours and potentially millions of wasted dollars.
9 Steps to Repeatable, Scalable, & Profitable Growth - older version
In this slide deck, David Skok talks through his 9 step process for B2B startups to get through product/market fit, and to then find a repeatable, scalable, and profitable growth process.
In David's experience some of the most fatal and expensive mistakes founders make is trying to skip steps. Understanding this roadmap will save you countless hours and potentially millions of wasted dollars.
Zero to 100 - Part 3: Founder-led Selling - Pete Kazanjy
Zero to 100 is a learning program from David Skok. It is a detailed instruction manual for how to take your startup from zero to $100m, with a particular focus on the area of building a go-to-market machine. So many of today’s founders come from a product or technical background, and have never been involved with sales and marketing. Right after starting their venture, they are hit with the huge problem of how to build their go-to-market organization and processes. It breaks the journey down into 9 steps, and explains why it is crucial not to skip steps in this journey in the rush to get ahead. The major Zero to 100 is a learning program from David Skok. It is a detailed detailed instruction manual for how to take your startup from zero to $100m, with a particular focus on the area of building a go-to-market machine. So many of today’s founders come from a product or technical background, and have never been involved with sales and marketing. Right after starting their venture, they are hit with the huge problem of how to build their go-to-market organization and processes. It breaks the journey down into 9 steps, and explains why it is crucial not to skip steps in this journey in the rush to get ahead. The major emphasis of the course focuses on building a repeatable, scalable and profitable growth machine. Once you have that in place, you are ready to hit the gas and scale like crazy.
To see videos of the presentations, click here: https://www.forentrepreneurs.com/matrix-growth-academy-zero-to-100-videos/
The document discusses buyer-centric funnel design. It emphasizes the importance of understanding where buyers are in their journey - awareness, consideration, or purchase. It recommends designing different experiences for each stage, with content that addresses buyer questions and concerns rather than just selling. The document also discusses identifying buyer personas, mapping their purchase process to the vendor's funnel, analyzing friction points, and optimizing the funnel based on buyer motivations and decision criteria. It provides examples from companies like Salsify and Apollo that redesigned their trials based on this approach, removing steps and addressing buyer pain points, which increased conversion rates.
Building a Sales and Marketing machine for a B2B software company involves many functions working together. This slide deck explores the process of funnel design that is highly buyer centric. It looks at the Buyer journey, and how to successfully construct a buying process that they buyer will enjoy going through, which is very different from the typical sale process that is designed from the vendors standpoint, and fails because the buyer is not motivated to go through the steps.
Presentation on the Application Development Landscape given as a keynote to the MassTLC CTO, developer and architect audience on December 15th in Cambridge, MA. Covers the key challenges and architectural decisions faced by developers. Topics include: Mobile, Cloud, SaaS, PaaS, Big Data, Analytics, etc.
The Science behind Viral Marketing is a look at the key factors that drive growth in viral marketing. (Hint, the most important factor is not the one everyone expects.) It also looks at what is needed to get virality to work, and how to create and optimize viral marketing campaigns or viral products.
One part of the presntation shows the key formulae behind viral marketing.
Suitable for marketers or for product designers.
The document discusses optimizing sales and marketing funnels. It outlines a 9-step process for building a "sales and marketing machine" that is predictable, instrumented with metrics, cost-optimized, scalable and automated. The key steps include identifying all parties involved in purchasing decisions, understanding their buying process and concerns, designing actions to entice them through the process while addressing concerns, and aligning all funnel activities to directly lead to sales.
This document discusses key metrics and economics for a SaaS business model. It provides details on sales compensation, bookings targets, churn rates, margins. It examines how revenue is generated from a single salesperson over time. Graphics show how monthly recurring revenue grows as new salespeople are hired each month. Lowering churn rates can significantly impact long-term profits. Collecting payment upfront eliminates cash flow troughs. Sales complexity impacts customer acquisition costs, requiring higher prices and more approval steps. Regular product improvements provide feedback on customer happiness.
CAPACITY BUILDING:HOW TO GROW YOUR INFLUENCE, INCOME & IMPACT
Don't wish for less problems but for more capacity.
In this slideshare, you will discover the importance of capacity and different critical areas you must build to achieve your dream life.
To get the recording of this seminar, join our community on Clubhouse @ High Impact Makers
Understanding Bias: Its Impact on the Workplace and Individuals
In the presentation, I delve into what bias is, the different types of biases that commonly occur, and the profound negative impacts they have on both workplace dynamics and individual well-being. Understanding these aspects is the first step towards creating a more equitable and supportive work culture.
The Certified Administrative Officer (CAO) is a gold-standard certification awarded exclusively by the Global Academy of Finance and Management ®. Earning this designation demonstrates that you have skills and experience in office administration which includes events coordination, time management, resource management, Microsoft Office applications, and business communication.
REQUIREMENTS
The Certified Administrative Officer designation requires a diploma or a bachelor's degree in business and administration, or related field.
Two years experience in office administration
Final year graduates with industrial attachment will be considered.
In addition to educational requirements, candidates must have knowledge in Microsoft Office applications, and business communication skills.
To apply: https://gafm.com.my/digital-certification/application-for-certification/
Embracing Change_ Volunteerism in the New Normal by Frederik Durda.pdf
The new normal has not diminished the spirit of volunteerism; rather, it has transformed it, opening up new avenues for individuals to connect with and support their communities. As we continue to adapt, volunteerism will remain a vital force in building resilient, compassionate, and inclusive societies.
Zero to 100 - Part 6: Experiences putting Theory into PracticeDavid Skok
Zero to 100 is a learning program from David Skok. It is a detailed instruction manual for how to take your startup from zero to $100m, with a particular focus on the area of building a go-to-market machine. So many of today’s founders come from a product or technical background, and have never been involved with sales and marketing. Right after starting their venture, they are hit with the huge problem of how to build their go-to-market organization and processes. It breaks the journey down into 9 steps, and explains why it is crucial not to skip steps in this journey in the rush to get ahead. The major emphasis of the course focuses on building a repeatable, scalable and profitable growth machine. Once you have that in place, you are ready to hit the gas and scale like crazy.
To see videos of the presentations, click here: https://www.forentrepreneurs.com/matrix-growth-academy-zero-to-100-videos/
Zero to 100 - Part 5: SaaS Business Model & MetricsDavid Skok
Zero to 100 is a learning program from David Skok. It is a detailed instruction manual for how to take your startup from zero to $100m, with a particular focus on the area of building a go-to-market machine. So many of today’s founders come from a product or technical background, and have never been involved with sales and marketing. Right after starting their venture, they are hit with the huge problem of how to build their go-to-market organization and processes. It breaks the journey down into 9 steps, and explains why it is crucial not to skip steps in this journey in the rush to get ahead. The major emphasis of the course focuses on building a repeatable, scalable and profitable growth machine. Once you have that in place, you are ready to hit the gas and scale like crazy.
To see videos of the presentations, click here: https://www.forentrepreneurs.com/matrix-growth-academy-zero-to-100-videos/
This presentation is from my talk at the 2017 SaaStr Annual Conference in San Francisco. It offers an overview of a simple model to understand a SaaS business and the key levers a CEO can pull to get the most impact. The presentation covers:
Optimizing the SaaS Funnel:
- Get inside your customer’s head
- Break down the funnel into microsteps
- Identify bottlenecks
- Use funnel math to make improvements
12 key levers within the funnel:
1) Product/Market fit
2) Top of the funnel flow
3) Conversion rate
4) CAC (customer acquisition cost)
5) Number of sales people
6) PPR (productivity per rep)
7) Getting enough leads
8) Pricing
9) Customer retention rate
10) Dollar retention rate
11) Months to recover CAC
12) Recruiting, onboarding & management
Zero to 100 - Part 4: Building a Sales Team - Stephanie SchatzDavid Skok
Zero to 100 is a learning program from David Skok. It is a detailed instruction manual for how to take your startup from zero to $100m, with a particular focus on the area of building a go-to-market machine. So many of today’s founders come from a product or technical background, and have never been involved with sales and marketing. Right after starting their venture, they are hit with the huge problem of how to build their go-to-market organization and processes. It breaks the journey down into 9 steps, and explains why it is crucial not to skip steps in this journey in the rush to get ahead. The major emphasis of the course focuses on building a repeatable, scalable and profitable growth machine. Once you have that in place, you are ready to hit the gas and scale like crazy.
To see videos of the presentations, click here: https://www.forentrepreneurs.com/matrix-growth-academy-zero-to-100-videos/
Describes the steps required to build a Sales and Marketing Machine that is predictable, scalable, automated, well instrumented, and cost efficient.
This was a presentation that I gave at the Lean Startup Circle in Boston on March 24th, 2011.
A High Growth SaaS Playbook - 12 Metrics to Drive SuccessSaaStock
Keynote by David Skok, ForEntrepreneurs Blog & General Partner, Matrix Partners, at SaaStock on Tour New York, 20th June 2018, KnockDown Center, Maspeth, NYC
WebSummit 2018 - 9 Secrets for Startup SuccessDavid Skok
Lean Startup taught the world how to find product/market fit, but in the B2B world that isn’t enough. B2B founders must then find a way to build repeatable, scalable and profitable growth before they are ready to step on the accelerator and grow at high speed. In this talk, five-time serial entrepreneur and author of the ForEntrepreneurs blog, David Skok, breaks this journey down into 9 distinct stages and explains the playbook at each stage. Warning: trying to force growth by skipping a step is the number one mistake entrepreneurs make, and it is often fatal.
Zero to 100 - Part 2: Building a Repeatable, Scalable Growth ProcessDavid Skok
Zero to 100 is a learning program from David Skok. It is a detailed instruction manual for how to take your startup from zero to $100m, with a particular focus on the area of building a go-to-market machine. So many of today’s founders come from a product or technical background, and have never been involved with sales and marketing. Right after starting their venture, they are hit with the huge problem of how to build their go-to-market organization and processes. It breaks the journey down into 9 steps, and explains why it is crucial not to skip steps in this journey in the rush to get ahead. The major emphasis of the course focuses on building a repeatable, scalable and profitable growth machine. Once you have that in place, you are ready to hit the gas and scale like crazy.
To see videos of the presentations, click here: https://www.forentrepreneurs.com/matrix-growth-academy-zero-to-100-videos/
How Startups Can Build a Recruiting MachineDavid Skok
Something important has changed in the recruiting process: the best people are almost never on the market, and you have to develop recruiting processes to find and sell passive candidates. In many cases, it will take months or years of relationship building with these candidates to find the right moment when they are open to considering a change. Closing them takes greater selling efforts than in the past due to the intense competition over the good candidates. This leads me to believe that there is now a third crucial startup skill that needs to be developed: recruiting.
Time to Wow! and Buyer-centric Funnel DesignDavid Skok
The document provides guidance on optimizing a company's sales funnel by taking a buyer-centric approach. It recommends mapping the buyer's decision process and addressing all their decision criteria and concerns at each step. Key strategies include removing friction points, adding motivators, and testing for problems through the lens of the buyer's experience. The goal is to design a funnel that delights buyers and keeps them motivated to continue engaging with the sales process.
Zero to 100 - Part 7: The Role of the CEODavid Skok
Zero to 100 is a learning program from David Skok. It is a detailed instruction manual for how to take your startup from zero to $100m, with a particular focus on the area of building a go-to-market machine. So many of today’s founders come from a product or technical background, and have never been involved with sales and marketing. Right after starting their venture, they are hit with the huge problem of how to build their go-to-market organization and processes. It breaks the journey down into 9 steps, and explains why it is crucial not to skip steps in this journey in the rush to get ahead. The major emphasis of the course focuses on building a repeatable, scalable and profitable growth machine. Once you have that in place, you are ready to hit the gas and scale like crazy.
To see videos of the presentations, click here: https://www.forentrepreneurs.com/matrix-growth-academy-zero-to-100-videos/
In this presentation you will find information about importance of Key Performance Indicators (KPI's) for subscription-based (SaaS) Internet startups.
The full list of metrics mentioned in the presentation, exact formulas, and examles you can find at http://datmachine.co/saas_metrics.
If you have any questions, don't be shy to drop me a line on my email: efremov(at)datmachine.co.
Zero to $50M – A Roadmap of the Key Stages, and How to Win at Each Stagesaastr
David Skok - General Partner / Matrix Partners
There are seven key stages in a startup’s evolution from $0m to $50m in revenue. Understanding where you are in that evolution, and how to act at each stage is critical for success, as what is appropriate at one stage is not appropriate at another stage. David will lay out the roadmap, and detail the keys to success at each stage.
WebSummit 2018 - The SaaS Business Model & MetricsDavid Skok
SaaS businesses are extremely sensitive to a small number of important variables. If you are running a SaaS company, understanding how these variables drive your business model is crucial to long-term success. In this talk, David Skok, author of the now famous SaaS Metrics 2.0 blog post will talk through those key metrics and their impact on the overall SaaS business model.
There are seven key stages in a startup’s evolution from $0m to $50m in revenue. Understanding where you are in that evolution, and how to act at each stage is critical for success, as what is appropriate at one stage is not appropriate at another stage. David will lay out the roadmap, and detail the keys to success at each stage. The talk is aimed at technical/product founders plus their sales, marketing & product executives who are responsible for the go-to-market strategy for their company.
David Skok, General Partner at Matrix Partners, provides a simple model to understand a SaaS businesses, as well as the key levers founders, can leverage to drive SaaS success.
There is a common problem where startups have an unbalanced business model with too high of customer acquisition costs compared to lifetime customer value. This document discusses the importance of having a well-balanced business model with consideration for cost to acquire customers, monetization and lifetime customer value. It also covers how the internet has shifted power to customers and changed buying behavior, requiring sellers to have an intimate understanding of customers to be successful.
The document discusses business model innovation and key lessons learned from case studies. It emphasizes the importance of balancing the cost to acquire customers (CAC) with the lifetime value (LTV) of customers. Business models that use free trials, freemium options, and viral marketing can achieve low CAC through inbound marketing techniques. Recurring subscription revenue models provide predictability and allow companies to scale through efficient sales processes.
Balderton Metrics that Matter in 2023.pdfDave Kellogg
Slides from the Balderton version of my Kiwi SaaS presentation, Metrics that Matter in 2023, designed to talk about which SaaS metrics matter today that, in some cases, were not as important 12-24 months ago.
The Future of the Cloud Is Customer SuccessGainsight
This document provides an agenda and slides from a presentation on the future of cloud computing and customer success. The presentation discusses key topics including the state of the cloud market in 2017, benchmarks for cloud company growth and efficiency, and a model called the "Helix Model" for driving revenue growth through customer success. The presentation aims to provide cloud company leaders with insights on scaling their business and retaining customers through a customer-centric approach.
David Skok on The SaaS Founder's Journey || SAAS NORTH 2017L-SPARK
http://www.l-spark.com -- Watch the video of David Skok's keynote over on our blog.
David Skok joined Matrix Partners as a General Partner in May 2001. He has a wealth of experience running companies. David started his first company in 1977 at age 22. Since then David has founded a total of four separate companies and performed one turn-around. Three of these companies went public.
David joined Matrix from SilverStream Software, which he founded in June 1996. Prior to its July 2002 acquisition by Novell, SilverStream was a public company that had reached a revenue run rate in excess of $100M, with approximately 800 employees and offices in more than 20 countries around the world.
David’s work as a value added investor is best known for helping HubSpot, JBoss, AppIQ, Tabblo, Netezza, Diligent Technologies, CloudSwitch, TribeHR, GrabCAD, OpenSpan and Enservio to successful exits. David currently serves on the boards of Atomist, CloudBees, Conductor, Digium (makers of the very popular Asterisk Open Source PBX/telephony software), Meteor, NamelyHR, Salsify, Storiant, VideoIQ and Zaius.
In addition to his broad focus on enterprise software, David is specifically focused on the areas of SaaS (software as a service), cloud, mobility, Open Source, marketing automation, virtualization, storage, and data center automation.
David writes a blog for entrepreneurs and startups on topics such as viral marketing, SaaS metrics, building a sales and marketing machine, techniques for lowering cost of customer acquisition, etc. The blog can be found here: www.forEntrepreneurs.com.
Presented by Richard Brooks at the ALC conference in Las Vegas NV. Explores the realtionship/importance of strategic sales management, marketing and key account management. Moves on to present models around the life-time value of clients to an organisation and how this changes as firms develop.
Why It Takes 7-13+ Touches to Generate a Qualified B2B Sales Lead TodayVivastream
The document discusses why it takes 7-13+ touches to generate a qualified B2B sales lead today. It notes that 73% of leads distributed to sales are not sales-ready, creating problems. It then outlines 11 ways to shorten the lead generation cycle and improve results, including starting with the end in mind by understanding buyer personas; clearly defining "sales-ready" leads; quantifying lead quotas; aligning sales, marketing, and management; improving target data; segmenting markets; using compelling content and offers; emphasizing relationships over automation; and warming prospects first with email or direct mail before calling. Case studies are cited showing the benefits of a multi-touch, relationship-based approach.
This document discusses key metrics for SaaS startup success. It defines 8 important sales metrics: monthly recurring revenue (MRR), bookings, annual contract value (ACV), churn, cash efficiency ratio, magic number, lifetime value to customer acquisition cost ratio (LTV/CAC), and payback period. Each metric is explained with examples and notes on why it is important to measure. Target performance levels are listed for some metrics, such as aiming for a cash efficiency ratio over 10% and LTV/CAC ratio over 3x. The document concludes with a reminder that this list is not comprehensive and mentions some additional factors to track.
Why It Takes 7-13+ Touches to Generate a Qualified B2B Sales Lead TodayVivastream
1. Generating qualified B2B sales leads takes 7-13 or more touches today because prospects do not provide full information needed for sales qualification in a single interaction and must be nurtured over time through multiple communications.
2. Creating a "perfect prospect profile" that clearly defines what constitutes a "sales-ready qualified lead" can help align marketing and sales teams and improve lead quality.
3. Developing a lead-to-sales requirements calculator based on sales goals can help determine how many qualified leads are needed each month to meet targets.
Convincing Your Boss(es) to Confidently Spend (more) on AdvertisingHanapin Marketing
Could your business profit from the scaling of advertisement spend? Wrangling your boss with swagger and tact is not always enough to win larger budgets. The Answer? Arming yourself with a customer-centric strategy, backed by CLV, that can drive a responsible and ‘winning’ conversation with your organization. In this session you will walk away with knowledge and actionable resources so you can:
- Convince your boss how spending more on advertising will benefit your organization.
- Conquer your omnichannel success metrics and their impact on your customer lifetime value.
- Confidently use your data to transform your organization to be more customer-centered.
A detailed look at why SaaS business are so different from traditional software companies, and why traditional ways of looking at their finances fail to understand the business. Provides an alternative set of metrics that show the right way to look at a SaaS business.
For more on the SaaS business model and Metrics, see this blog post:
www.forentrepreneurs.com/saas-metrics-2/
When it comes to online advertising, it isn't about how much you spend, it's about how you spend it.
Should you be spending more on Facebook or Google?
What is the best budget for your industry?
When should you stop putting money behind a poor-performing campaign?
For these answers and more, join our live webinar with our in-house pay-per-click expert.
You'll learn:
- How to use 2018's results to set the best budget for your business in 2019
- What processes you can set up now to keep wasted spend in check all year long
- How to quickly determine which ad types are actually worth putting your budget behind
- What signs you should be looking for when managing your bids
This document provides an overview of the evolution of email marketing from 2016. It discusses how email marketing has progressed from basic batch and blast strategies to more personalized approaches using techniques like consumer journey mapping, segmentation based on recency and frequency scores, and developing long-term engagement strategies. It highlights how the most effective marketers treat their email lists as valuable customer relationships to nurture over time, rather than one-time sales channels. Measurement is also emphasized, with more advanced companies tying their metrics to objectives like lifetime customer value rather than just opens and clicks. The document aims to demonstrate how marketers can maximize the potential of email as a marketing strategy through personalization, long-term engagement, and strategic measurement.
Building Your ABM Marketing-to-Sales Playbook Using Meeting Maker Campaigns.Laurie Beasley
The biggest change in B2B marketing strategy recently is to shift the engagement model from awareness campaigns to account based marketing campaigns. This flips the funnel and directs marketing to the target account. Learn more.
The document provides tips for managing a virtual insurance agency, including setting clear expectations for producers, tracking key metrics like closing ratios and cross-selling, and setting goals around obtaining referrals and suggestive selling of add-on products to increase income per sale. Implementing these strategies such as asking for one referral per day and suggestive selling one add-on product per policy could result in over $20,000 more income per producer annually.
The document discusses why it takes 7-13+ touches to generate a qualified B2B sales lead today. It provides examples of multi-touch lead generation sequences involving emails, direct mail, phone calls, and webinars. It also presents a case study of a glove manufacturer that implemented a multi-touch, multi-channel campaign involving email, teleprospecting, and two different offers. This led to an average of 4-5 touchpoints required to generate a qualified sales lead, helping the company achieve its sales goals.
Understanding customer acquisition costs - a VC's viewRob Moffat
This document discusses understanding customer acquisition costs from a VC's perspective. It addresses challenges in marketing attribution and metrics. It presents a quant marketer's approach to analyzing above-the-line advertising channels like TV. Key points include understanding costs by new vs repeat customers and paid vs free channels, improving attribution models over time, optimizing conversion rates to reduce costs, and testing large TV campaigns to properly measure impact while accounting for factors like branding effects.
Convincing Your Boss(es) to Confidently Spend (more) on AdvertisingKevin Dieny
My Presentation from my Session at HeroConf 2019, in Philadelphia.
This presentation is for anyone who wants to invoke data-decision making and business transformation learning:
1) How to convince your boss to spend more budget on advertising so it benefits your entire organization.
2) How to conquer the proper success metrics, "The Golden Metrics" linked to Customer Lifetime Value (CLV).
3) How to confidently use your data to transform your business to be more customer-centric.
The Incredible Impact of Churn on the Value of Your CompanyGainsight
Did you know? A SaaS company with 5% annual revenue churn will be valued 200% higher than a similar company with 15% annual revenue churn.
It’s certainly no secret that churn hurts recurring revenue businesses, but just how much? Beyond simply reducing the revenue you generate, churn hurts the future value of your customers and, ultimately, the future value of your company as a whole.
Join Gainsight Customer Success Evangelist Lincoln Murphy and Todd Gardner, Founder and Managing Director of SaaS Capital, as they dig into the following key questions on why churn hurts and how focusing on Customer Success can have a dramatic impact on your company’s value. This webinar will specifically cover:
- Valuation Drivers of SaaS Companies
- The Impact of Churn through a Case Study
- Measuring, Comparing and Forecasting Churn
The most successful Enterprise SaaS companies know that growing revenue only through new customer acquisition is the less efficient way to scale. Rather, they understand that growing revenue within your existing customer base - through up-sells, cross-sells, and expanded use - is the most profitable way to scale.
In fact, Enterprise SaaS companies that grow revenue - and company valuation - by expanding revenue within their existing customer base also know the key to making this work is to focus on - and operationalize - Customer Success.
When it comes to online advertising, it isn't about how much you spend, it's about how you spend it.
Should you be spending more on Facebook or Google? What is the best budget for your industry? When should you stop putting money behind a poor-performing campaign?
For these answers and more, join our live webinar with our in-house pay-per-click expert.
You'll learn:
- How to use 2018's results to set the best budget for your business in 2019
- What processes you can set up now to keep wasted spend in check all year long
- How to quickly determine which ad types are actually worth putting your budget behind
- What signs you should be looking for when managing your bids
How to Survive and Thrive in the post-Covid EraDavid Skok
This presentation starts by looking at the huge global forces that are currently reshaping the world, triggered by Covid. It then drops down layer by layer, to finally show how you need to react as a SaaS business to set up for success in a changed world.
These are the slides that I used in my presentation at SaaStock Remote 2020 on June 10th.
9 Steps to Repeatable, Scalable, & Profitable GrowthDavid Skok
In this slide deck, David Skok talks through his 9 step process for B2B startups to get through product/market fit, and to then find a repeatable, scalable, and profitable growth process.
In David's experience some of the most fatal and expensive mistakes founders make is trying to skip steps. Understanding this roadmap will save you countless hours and potentially millions of wasted dollars.
In this slide deck, David Skok talks through his 9 step process for B2B startups to get through product/market fit, and to then find a repeatable, scalable, and profitable growth process.
In David's experience some of the most fatal and expensive mistakes founders make is trying to skip steps. Understanding this roadmap will save you countless hours and potentially millions of wasted dollars.
Zero to 100 - Part 3: Founder-led Selling - Pete KazanjyDavid Skok
Zero to 100 is a learning program from David Skok. It is a detailed instruction manual for how to take your startup from zero to $100m, with a particular focus on the area of building a go-to-market machine. So many of today’s founders come from a product or technical background, and have never been involved with sales and marketing. Right after starting their venture, they are hit with the huge problem of how to build their go-to-market organization and processes. It breaks the journey down into 9 steps, and explains why it is crucial not to skip steps in this journey in the rush to get ahead. The major Zero to 100 is a learning program from David Skok. It is a detailed detailed instruction manual for how to take your startup from zero to $100m, with a particular focus on the area of building a go-to-market machine. So many of today’s founders come from a product or technical background, and have never been involved with sales and marketing. Right after starting their venture, they are hit with the huge problem of how to build their go-to-market organization and processes. It breaks the journey down into 9 steps, and explains why it is crucial not to skip steps in this journey in the rush to get ahead. The major emphasis of the course focuses on building a repeatable, scalable and profitable growth machine. Once you have that in place, you are ready to hit the gas and scale like crazy.
To see videos of the presentations, click here: https://www.forentrepreneurs.com/matrix-growth-academy-zero-to-100-videos/
The document discusses buyer-centric funnel design. It emphasizes the importance of understanding where buyers are in their journey - awareness, consideration, or purchase. It recommends designing different experiences for each stage, with content that addresses buyer questions and concerns rather than just selling. The document also discusses identifying buyer personas, mapping their purchase process to the vendor's funnel, analyzing friction points, and optimizing the funnel based on buyer motivations and decision criteria. It provides examples from companies like Salsify and Apollo that redesigned their trials based on this approach, removing steps and addressing buyer pain points, which increased conversion rates.
Building a Sales and Marketing machine for a B2B software company involves many functions working together. This slide deck explores the process of funnel design that is highly buyer centric. It looks at the Buyer journey, and how to successfully construct a buying process that they buyer will enjoy going through, which is very different from the typical sale process that is designed from the vendors standpoint, and fails because the buyer is not motivated to go through the steps.
The Application Development Landscape - 2011David Skok
Presentation on the Application Development Landscape given as a keynote to the MassTLC CTO, developer and architect audience on December 15th in Cambridge, MA. Covers the key challenges and architectural decisions faced by developers. Topics include: Mobile, Cloud, SaaS, PaaS, Big Data, Analytics, etc.
The Science behind Viral Marketing is a look at the key factors that drive growth in viral marketing. (Hint, the most important factor is not the one everyone expects.) It also looks at what is needed to get virality to work, and how to create and optimize viral marketing campaigns or viral products.
One part of the presntation shows the key formulae behind viral marketing.
Suitable for marketers or for product designers.
The document discusses optimizing sales and marketing funnels. It outlines a 9-step process for building a "sales and marketing machine" that is predictable, instrumented with metrics, cost-optimized, scalable and automated. The key steps include identifying all parties involved in purchasing decisions, understanding their buying process and concerns, designing actions to entice them through the process while addressing concerns, and aligning all funnel activities to directly lead to sales.
This document discusses key metrics and economics for a SaaS business model. It provides details on sales compensation, bookings targets, churn rates, margins. It examines how revenue is generated from a single salesperson over time. Graphics show how monthly recurring revenue grows as new salespeople are hired each month. Lowering churn rates can significantly impact long-term profits. Collecting payment upfront eliminates cash flow troughs. Sales complexity impacts customer acquisition costs, requiring higher prices and more approval steps. Regular product improvements provide feedback on customer happiness.
CAPACITY BUILDING:HOW TO GROW YOUR INFLUENCE, INCOME & IMPACTTochi22
Don't wish for less problems but for more capacity.
In this slideshare, you will discover the importance of capacity and different critical areas you must build to achieve your dream life.
To get the recording of this seminar, join our community on Clubhouse @ High Impact Makers
Understanding Bias: Its Impact on the Workplace and Individualssanjay singh
In the presentation, I delve into what bias is, the different types of biases that commonly occur, and the profound negative impacts they have on both workplace dynamics and individual well-being. Understanding these aspects is the first step towards creating a more equitable and supportive work culture.
Certified Administrative Officer CAO.pdfGAFM ACADEMY
The Certified Administrative Officer (CAO) is a gold-standard certification awarded exclusively by the Global Academy of Finance and Management ®. Earning this designation demonstrates that you have skills and experience in office administration which includes events coordination, time management, resource management, Microsoft Office applications, and business communication.
REQUIREMENTS
The Certified Administrative Officer designation requires a diploma or a bachelor's degree in business and administration, or related field.
Two years experience in office administration
Final year graduates with industrial attachment will be considered.
In addition to educational requirements, candidates must have knowledge in Microsoft Office applications, and business communication skills.
To apply: https://gafm.com.my/digital-certification/application-for-certification/
Embracing Change_ Volunteerism in the New Normal by Frederik Durda.pdfFrederik Durda
The new normal has not diminished the spirit of volunteerism; rather, it has transformed it, opening up new avenues for individuals to connect with and support their communities. As we continue to adapt, volunteerism will remain a vital force in building resilient, compassionate, and inclusive societies.
4. Search for Product/Market Fit
Scaling the Business
Search for Repeatable & Scalable
& Profitable Growth Model
The Three Phases of a Startup’s Lifecycle
5. Predictable, Repeatable, Scalable, Profitable Growth
Scaling the Business
Search for Product/Market Fit
Search for Repeatable & Scalable
& Profitable Growth Model
6. Also happens to be what Growth Round investors are looking for
7. The key sign that you’re getting there:
Bookings - (NOT Revenue or ARR!)
For SaaS:
Bookings = Net New ARR
(New + Expansion – Churned)
Q1 Q2 Q3 Q4 Q5 Q6 Q7
10. Key SaaS chart: 4 components of bookings
$(15.0)
$(10.0)
$(5.0)
$-
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
Jan Feb Mar Apr May Jun
ARR Bookings
New ARR
Net New ARR
Expansion ARR
Churned ARR
Always look at a
chart that shows the
trendlines to see if
there is growth
34. Number of Sales People
One of the most common reasons for missing plan
Didn’t hire sales people fast enough
35. Sales Hiring
• You will need to build an in house recruiting machine
See my blog post:
“Recruiting: the third crucial Startup Skill”
36. Two Metrics to Track
0
2
4
6
8
10
12
14
16
18
Q4-16 Q1-17 Q2-17 Q3-17 Q4-17
Number of Reps versus Plan
Reps Plan
$0
$500
$1,000
$1,500
$2,000
$2,500
Q4-16 Q1-17 Q2-17 Q3-17 Q4-17
Assigned Quota vs Plan & New ARR
Assigned Quota Plan Bookings
$k
37. Lost Bookings
due to slow
hiring
$0
$500
$1,000
$1,500
$2,000
$2,500
Q4-16 Q1-17 Q2-17 Q3-17 Q4-17
Assigned Quota vs Plan & New ARR
Assigned Quota Plan Bookings
$k $500k
38. Over
Assignment
of Quota
needed to
hit plan
=1/85%
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
Q4-16 Q1-17 Q2-17 Q3-17 Q4-17
Assigned Quota vs Achieved
Bookings
$k
85%
Assigned Quota
Actual Bookings
40. PPR: Sales Training and Onboarding
• Sales people: one of the most expensive resources
• Yet typically little effort put in to sales training in early days
• High payback
• Worth having the founders spend time to develop & deliver a lot of the material
50. Raw Lead
Marketing
Qualified Lead
Sales Accepted
Lead
Opportunity
Closed Deal
20%
80%
25%
20%
Closed Deal1
Opportunity5
Sales Accepted
Lead
20
Marketing
Qualified Lead
25
Raw Lead125
Reverse Funnel Math
51. Allows us to Compute Leads required per Rep
x
No of
Closed Deals
=
Reverse Funnel
Conversion Rate
Marketing Qualified
Leads Required
52. This becomes the Contract between Sales & Marketing
Marketing Qualified
Leads Required Sales
Marketing
SDR’s
53. The Backend of the Funnel
Closed Deals
Loyal
Customers
who are
Advocates
Renew ExpandOnboard
It’s all about LTV
54. Top Factors affecting Renewals
• On-boarded successfully?
• Champion still at the company?
• Customer getting meaningful business benefits?
• Is the product Sticky?
55. Dollar Renewal Rate is King
This is also what I refer to as Negative Churn
Customer
Renewal Rate
>Dollar
Renewal Rate
61. Negative Churn – Crucial for Long Term Success
Revenue Lost with
2.5% monthly Churn
Renewals
Lost due
to Churn
YEAR 3
$3m $7m
Becomes harder
& harder to
replace this with
new bookings
Renewals
Lost due
to Churn
YEAR 6
$30m $70m
74. A rough estimate of CAC versus Sales Complexity
Freemium
No Touch
Self-
Service
Light Touch
Inside
Sales
High Touch
Inside
Sales
Field Sales
Field Sales
with SE’s
$0-
$10
$50 –
$200
$1,000 -
$2,000
$3,000 -
$8,000
$25,000 –
$75,000
$75,000 –
$200,000
Rough Estimates of Cost of Customer Acquisition (CAC)
75. The relationship is roughly exponential
Clearly adding
Human Touch
dramatically
increases costs
78. WHAT IS YOUR TIME TO
WOW! ?
For more on this topic, see this presentation:
https://www.forentrepreneurs.com/launch-scale-2017/
79. LTV - Importance of Gross Margins
LTV = ARPA * GM%
Churn
This is the simple formula. If you have negative churn, please refer to this blog post:
What’s your TRUE customer lifetime value (LTV)? – DCF provides the answer
https://www.forentrepreneurs.com/ltv/
80. Improving Gross Margins
• Greatest cost is usually people costs in implementation and on-boarding
• Solve by:
• Simplifying the product
• On-line training courses
• Provide in-product training videos and walk-throughs
• Charge a one time fee for implementation
82. The Cash Flow Gap
$(25,000)
$(20,000)
$(15,000)
$(10,000)
$(5,000)
$-
$5,000
$10,000
$15,000
$20,000
$25,000
Month1
Month2
Month3
Month4
Month5
Month6
Month7
Month8
Month9
Month10
Month11
Month12
Month13
Month14
Month15
Month16
Month17
Month18
Month19
Month20
Month21
Month22
Month23
Month24
Net profit - New Sales Hire
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
Month
1
Month
2
Month
3
Month
4
Month
5
Month
6
Month
7
Month
8
Month
9
Month
10
Month
11
Month
12
MRR vs Expenses – New Sales
Hire
MRR
Expenses
Cash
Gap
(Slightly later breakeven point, because Gross Profit is less than MRR)
11 months to
breakeven
83. The SaaS
Cash Flow Trough
$(200,000)
$(100,000)
$-
$100,000
$200,000
$300,000
$400,000
Cumulative Net Profit - New Sales
Hire
23 Months to
get back the
investment
Total amount
invested:
$110k
But a great
return on
investment
84. What happens when we add 2 new sales hires every month?
$(250,000)
$(200,000)
$(150,000)
$(100,000)
$(50,000)
$-
$50,000
$100,000
$150,000
Month1
Month2
Month3
Month4
Month5
Month6
Month7
Month8
Month9
Month10
Month11
Month12
Month13
Month14
Month15
Month16
Month17
Month18
Month19
Month20
Month21
Month22
Month23
Month24
Net profit
$(3,000,000)
$(2,000,000)
$(1,000,000)
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
Cumulative Net Profit
32 Months to
get back the
investment
Total amount
invested:
$2.6m
First profitable
month: 21
Worst loss:
$190k in
month 11
85. Salesperson Unit Economics
• Quota:OTE (On Target Earnings) Should be > 5
• PPR:OTE Roughly > 3.5
• Months to cash flow breakeven for a new sales hire
88. Recruiting is now the
third critical startup skill
The first two skills are:
• Building a product that the market wants to buy
• Building a repeatable, scalable, profitable growth process
For more details, see this blog post: https://www.forentrepreneurs.com/recruiting/
89. Recruiting & Talent Metrics
• % of hires made on time
• Hiring funnel Metrics
• Candidate Acceptance rate
• Average number of candidates in the final interview stage for open positions
• Etc.
• Diversity %
• Retention by category
• Exceptional performers
• Core performers
• OK performers
• Not performing
91. Simple Team Focus:
• Align the whole team around
one goal: Optimize your Funnel
• Use Metrics to drive aligment and
focus
• The end goal: build a Repeatable,
Scalable, & Profitable growth
machine