3 ms·
> 40% of their revenue is concentrated in <1% of their paid customers. Is this normal in the corporate SaaS market ? Speaking from my experience of 6 months a
by vishnugupta 7y ago
> 40% of their revenue is concentrated in <1% of their paid customers. Is this normal in the corporate SaaS market ?
Speaking from my experience of 6 months at a SaaS company this is about the norm.
Besides the usual 80/20 rule it gets more skewed at the top. And so even the product development was optimised to keep the top 1% happy. A ton of custom built features with hundreds of feature flags..
- doomjunky 7y agoThe 80/20 rule is basically the power law which is one of my favorite laws. https://en.wikipedia.org/wiki/Power_law https://en.wikipedia.org/wiki/Power_law
- notSupplied 7y agoIt is also one of the most abused rules, often used to justify extremely sloppy "big picture thinking".
- yosito 7y agoYeah, but 80% of the time, the sloppy thinking is right.
- jgalt212 7y agoI would say this is only normal/healthy if you have a freemium business model--otherwise the revenues to me seem way to skewed (i.e. very/very far away from 80/20).