4 ms·

That is pretty normal on high scaling SaaS solutions. If you earn 100k a year on a solution, and you know they in average stay for 5 years, you might spend 150k

• davedx 6y ago
  By that logic, as long as you're growing you'll always be losing tons of money and never be profitable? How is that a good business model? I mean we're only talking about revenue vs sales and marketing spend here -- the business has a load of other costs too.
  • snovv_crash 6y ago
    You're effectively gambling on running out of new customers at some point. What a world!
  • throwawayfire 6y ago
    That's a great business model if you have investors. You get a proven long-term return of 25% per annum. If you're doing it out of your own bank account, you'll bankrupt before realising this return: it's not a lifestyle business.
  • alangibson 6y ago
    > as long as you're growing you'll always be losing tons of money and never be profitable? Basically yea. This effect is just assumed in the world of physical products. As long as you're growing you're nearly out of business because you need to use N revenues to buy your next N+1 of stock.
  • ckdarby 6y ago
    You hit a tipping point with enough market grab that customers start to approach you without advertising. There is volume discount as you grow. There is upsell potential on the customers you've signed. As your signed customers grow their pockets grow to spend more on the solution. Takes about 3-6. If I use Snowflake today at company X without issue and I switch jobs in a couple years to a new company that hasn't picked their platform, what do you think most people will pick?