3 ms·
It was poorly phrased so I changed it. I meant that if a big chunk of your revenue comes from services, they are not going to be very enthusiastic about your bu
by doh 7y ago
It was poorly phrased so I changed it. I meant that if a big chunk of your revenue comes from services, they are not going to be very enthusiastic about your business.
- reggieband 7y agoThank you for the clarification. I hope I can ask another. What is the alternative that would make them enthusiastic? That is, if I am bootstrapping a business and want to attract these kind of investors then what sources of revenue would they like to see other than revenue from services?
- andrewmutz 7y agoProduct subscription revenue
- doh 7y agoWell, SAAS. That means subscription revenue, preferably in a market with large TAM that has simple CAC/LTV and churn calculations. Everything else is essentially a hassle.
- reggieband 7y agoI know Customer Acquisition Cost and LifeTime Value from working in free to play games. Total Available Market is a new acronymn/initialism for me. Funny how I don't know if it is pronounced "tam" or "tee, ay, em".
- doh 7y agoDon't worry, we all learn something every day. TAM/SAM/SOM are quite important metrics while judging a business. Sequoia [0] has some good information on it. [0] https://www.sequoiacap.com/china/en/article/measuring-product-health https://www.sequoiacap.com/china/en/article/measuring-produc...