Yulia Stovba’s Post

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I'm realy Shoked After Analysis of Google Ads Business Model. Google is 1 of the Best Business in the World but Still Google don't Analyse these Mistake in their Business Model. I have been Researching in 5 Major major Mistakes which is Google do and that is the Reason why google is not making millions of dollars from small business and big businesses in this time. Google Google Ads Google for Startups #mistakesofgoogles #syedabfulazizzaidi #abdulazizdigital

A lot of us in the #LogTech startup ecosystem have probably gone through the exercise of seeking partnerships to leverage distribution channels as a way of quickly getting to market. Like any deal, its important to truly understand what motivates the other side, and I think its easy to self-deceive and convince yourself that what you are proposing is so obviously good it is a 'slam dunk' and they would be foolish not to bite. And yet, time and time again they don't. This goes for enterprise sales as well. A lot of good nuggets in this article by @JasonCohen https://lnkd.in/geN_yfSA #SAAS #Partnership #BizDev

We offer no free plan at Scripe Here is why: When we started Scripe, we offered a free beta. We quickly attracted many companies. 📈 𝗕𝘂𝘁, 𝘄𝗲 𝗳𝗮𝗰𝗲𝗱 𝘀𝗲𝘃𝗲𝗿𝗮𝗹 𝗰𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀: - Low conversion rates from free to paid - High number of support tickets from non-ICP clients - Extra operational costs associated with free services - Feature requests unrelated to our ICP We even struggled to push new features due to the high number of free users. This got us thinking: 𝘐𝘧 𝘸𝘦 𝘩𝘢𝘷𝘦 𝘵𝘩𝘰𝘶𝘴𝘢𝘯𝘥𝘴 𝘰𝘧 𝘶𝘴𝘦𝘳𝘴 𝘵𝘩𝘢𝘵 𝘥𝘰𝘯’𝘵 𝘪𝘯𝘤𝘳𝘦𝘢𝘴𝘦 𝘢𝘸𝘢𝘳𝘦𝘯𝘦𝘴𝘴 𝘢𝘯𝘥 𝘸𝘪𝘭𝘭 𝘯𝘦𝘷𝘦𝘳 𝘱𝘢𝘺 𝘧𝘰𝘳 𝘰𝘶𝘳 𝘱𝘳𝘰𝘥𝘶𝘤𝘵, 𝘸𝘩𝘺 𝘥𝘰 𝘸𝘦 𝘪𝘯𝘴𝘪𝘴𝘵 𝘰𝘯 𝘰𝘧𝘧𝘦𝘳𝘪𝘯𝘨 𝘴𝘰𝘮𝘦𝘵𝘩𝘪𝘯𝘨 𝘵𝘩𝘢𝘵’𝘴 𝘨𝘰𝘪𝘯𝘨 𝘵𝘰 𝘩𝘶𝘳𝘵 𝘰𝘶𝘳 𝘣𝘶𝘴𝘪𝘯𝘦𝘴𝘴? That is why we decided to not offer a free plan and introduced a 10-day free trial. 𝗧𝗵𝗶𝘀 𝗿𝗲𝘀𝘂𝗹𝘁𝗲𝗱 𝗶𝗻: - Way fewer support tickets - Higher conversion from trial to paid - Less infrastructure and AI call costs Turns out, serious clients see the value and commit more. I’ll concede that there are certain types of apps that are more likely to succeed by offering a free plan and going with the Freemium model. But we quickly understood that we are not one of them and don’t have the resources to make that model work. What is your opinion on freemium models? #Startups #pricing #SaaS #Linkedinstrategy

One of the benefits of working with early-stage startups is that the best ones aren’t just vendors but partners investing in your success as you invest in theirs. I know I am a founder, and my opinions have an obvious bias, but if there’s one thing building out our cloud platform has taught me, it is to seek out vendors who will be true partners. For Convoy, two startups have been invaluable partners in our journey: Omnistrate (they help us bring up Convoy Clusters on AWS) and Maple (they help us monetise the Clusters in the Cloud ). Half the time building the Cloud is spent 30% speaking to them and 70% writing the code. Here’s an example from two months ago when we were battling an insidious memory leak on AWS. You can see this thread from Slack going back and forth with Alok (Omnistrate’s CTO) to find the root cause and solve the problem. This was one of the threads and Google Meet. 😄 I’m positive it would be nearly impossible for us to have shipped and made so much progress with our Cloud business if these startups didn’t exist. I am not one to share startup advice or try to pull advice out of every situation, but I think there’s a really good one here: For early-stage startup founders, be a partner, not just a vendor. Cheers P.S. This wasn’t a paid post.

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What happens when the backbone of your business collapses? 😰 As a business owner, Steven Feingertz faced that reality head-on when Amazon Web Services went down for 6-8 hours. While the internet was on “pause”, Steve and our team were left scrambling with our web-based software until we discovered the root cause. Watch to the end to find out how Steve spent his downtime. (Hint: he left his phone at home) 👀 #startuplife #business #amazon #amazonwebservices #aws #awscloud #cloud #downtime #smallbusinesssupport #founderlife #startup #founders #founderstories #internetdown #businessowner #entrepreneurlife #worklifebalance #behindthescenes #storytime #businessownerlife #businesschallenges #entrepreneurship #life

The post misses the most important point about operating leverage. From 5th year it is highly likely ARR will exceed Cost, resulting in cash profit. Even in the 3rd and 4th year, you will be spending mostly on new product development hence investing on growth and newers revenue streams. SaaS initial years costs are like Fixed Assets (of traditional brick and motor) and should not be only compared as 5x spend to generate 1x in revenue. Good generalization to highlight time to taken to achieve $1mARR. Where the generalization may need to be adjusted: (a) industry/use case may impact revenue traction and not just by top percentile (b) Cost may be lower than $1M per annum by various firms as well.

It takes about $5M and 4 years for a SaaS startup to reach $1M ARR 🤯 1️⃣ ~4% of SaaS startups reach $1M ARR. Yes, most die before that. ☠ 2️⃣ For these 4% startups, it takes 33 months (2 years 9 months) on average to reach $1M ARR. This 33 months is calculated from the day the 1st customer is acquired. See the screenshot of ChartMogul's report ⏳ 3️⃣ It takes 18 months for the top 25% of startups to reach $1M ARR from 1st customer acquisition date 🏆 4️⃣ It takes 9 months for the top 10% of startups to reach $1M ARR from 1st customer acquisition date 👑 5️⃣ Now, let's take an average $1M run and see how much it should cost. If it takes 2 years and 9 months from the 1st customer acquisition, I am guessing it takes 50% of that to build the product in the pre-revenue stage. So, that's 1 year and 5 months. It could take longer than this, but I am in a generous mood - so let's go with this. So, an average startup needs 4 years from the date they started 📅 6️⃣ How much should these 4 years cost? Again, it depends wildly. We can build many models, but for simplicity's sake, I am going to take $1M per year spent on salaries of all the tech, sales, marketing etc combined plus all the office running costs, rents, cloud infrastructure etc. So, that's $4M spent. Also, let's add $1M in marketing and sales activities (reasonable to expect this as most startups spend around $1.5-$2 to make $1 of sales). So, that gets us to $5M in total spends 💰 7️⃣ And, now we conclude. It takes ~$5M and ~4 Years to reach $1M ARR for an average SaaS startup - mind you, they are the 4% outliers themselves 💪 #SaaS #founders #startup #1millionARR #VC #funding