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I had the same thought. Their last Amazon bill was $35k. I don't think saving $10-20k/month would have made a significant difference. They had many freemium use
by mkempe 13y ago
I had the same thought. Their last Amazon bill was $35k. I don't think saving $10-20k/month would have made a significant difference. They had many freemium users, and were not adding customers at a sufficiently high growth rate over the life of the company. They were trying to raise $5m.
- eldavido 13y agoThe importance of this depends on unit economics. For businesses with historically tight margins (e.g. retail), small swings in input prices (labor, cost of goods) can make or break profitability. Whereas software, if you're doing it right, should have much higher margins. Sidenote: I'd be very curious to know what the "typical SaaS business" has as its gross margin, factoring in all sales against "cost of goods": servers, bandwidth, operations, etc.
- opendais 13y ago80% seems to be the common 'educated guess' number: http://www.quora.com/What-should-be-the-typical-gross-margin-for-a-SaaS-startup http://www.quora.com/What-should-be-the-typical-gross-margin... http://www.forentrepreneurs.com/saas-metrics-2-definitions/ http://www.forentrepreneurs.com/saas-metrics-2-definitions/ http://www.forbes.com/sites/jjcolao/2012/10/02/running-a-saas-business-answer-these-four-questions/ http://www.forbes.com/sites/jjcolao/2012/10/02/running-a-saa...