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> Having looked at various large SaaS companies (SF, Workday, etc) the variable costs appear to be quite high. Yeah, I've seen some of that too, but I still th
by drone 13y ago
> Having looked at various large SaaS companies (SF, Workday, etc) the variable costs appear to be quite high.
Yeah, I've seen some of that too, but I still think that outside of certain specialized markets and products, that the variable costs shouldn't approach 60%+ on the LTV of a sale. I would also tend to calculate commissions and one-time marketing expenses not only against the first month or payment period, but on the total LTV of the sale.