4 ms·
Too much focus on revenue and not customers can lead to missing out on great companies. For example, NetSuite was charging barely $20/mo when it launched. Today
by zaidf 12y ago
Too much focus on revenue and not customers can lead to missing out on great companies. For example, NetSuite was charging barely $20/mo when it launched. Today they don't take customers for less than five figures. A similar story exists for salesforce. In b2b it's common to start out downstream where you pick up smaller customers(and more of them) and over time to go upstream(so you are doing million dollar deals).
The heart of any b2b business is repeatable business. The problem is that the higher your pricing point, the fewer customers you will have. This makes it harder to know if you have a repeatable sales process. So given an option, in the early days I'd rather sign up 100 customers paying $1000/yr than 1 customer paying $100,0000/yr.