Did this video help you out? Do you feel like you've had a bunch of your SaaS questions answered? Let us know what you thought about the video in the comments!
Discovered your channel about a month ago and have been watching everything more than once. Keep up the great work. It’s really helping me build my business idea. Also, loving the new hair style. Keep it. Looks dope!
We are almost at the launch phase of our startup. And I wouldn't have survived without your amazing videos. Will definitely give you guys a shout out should we become that unicorn 🤗.
Awesome. This will be useful for my project. Just one thing ... add spell check to the Slidebean AI, BEGINNING is spelt as one G two Ns midway (light note)
Just a note, the formula for Net MRR Churn used Reactivation ARR, when I believe it should be Reactivation MRR. This is consistent with the other metrics used in the formula and the reactivated customers bringing in $169 in MRR.
The issue comes when you bill 1 year upfront: you get cash today, deferred revenue balances goes up and smooth revenue growth. So saas can have great ARR growth but erratic cash flows.
There is one big doubt. In the Net MRR Churn calculation at 12:22, the formula reads "Reactivation ARR" but actually considers MRR in the calculation. Is this a typo or do we actually take ARR?
I hate how companies look at their clients as datapoints. I understand the need and the usefulness of KPIs, but it still grinds my gears. It gets creepier and creepier the larger the company is. Don't want to subtract from the quality of the video, which is top notch.
Thank you for loads of info. Is it right that those metrics are suitable for SaaS only, not Marketplaces, where the revenue is a percentage of the vendors' revenue?
Wow! Great!!!! Just a doubt. 12:22 --> Net mrr formula. All KPIs are with MRR on the side, except reactivation that is ARR. Shouldn't suppose to be MRR to? Thx!!!
Just wanna understand how we are defining lost customer and lost MRR. If a customer cancels in between or a customer does not re subscribe. I am clear with downgrading the plan is also a lost revenue but not a lost customer.
Hi Caya or whoever is in charge of managing RU-vid comments ... But I'm working on this idea I have and I've been researching a lot about startups so I'm not sure whether to get a patent first, or should I get market validation and be like the lean Startup .. when did you get your patent for you product/services if you have one that is ? Any reply us greatly appreciated as I know you are really busy 😊.
This video is great! I have a question: In your Lifetime example, right after Churn explanation, you mentioned that 100 customers with 10% churn would give us an average 10 month Lifetime, but how do we connect this 10 month average with the fact that at this rate we will have 31 customers after 12 months and 9 after 24 months? If I average the number of customer in 45 months it is 22
Really curious if MRR is a good metric for an online marketplace. If its a marketplace where sellers should continue to sell and buyers continue to buy (not all marketplaces share this characteristic) then It sounds like it makes a lot of sense. Otherwise i'm still curious on what metrics a marketplace should track (kinda a founder of one thats launching next month
If you're operating the marketplace, then you should track the total $ amount of transactions per day/week/month (aka gross merchandise volume - GMV). THen figure out how to get a % from that. Then figure out how to grow the GMV so that you grow your revenue :)
This is amazing!!, Just one doubt: Considering the example of an “IT Consulting company”; how do you include in the MRR metric the earnings of “it projects” (software and applications developments, etc) that have a duration of 3, 7 or 24 months?? I mean, I could divide the “Total Contract Value (TCV)” between 12, but after 7 months, when the project had been finished and total payments had been done, I would have to register a “Churn”, but this would be incorrect! I would have only taken into account 58% of income (7 months out of 12)… the other option is to divide the TCV between 12 and register the Customer Churn 5 moths later t 5 months after the actual departure date, but this would make an unreal MRR metric… I really hope you could help me!
I just thought of a question, what if you offered your app for free for 3 months, then you released a plan, will the free period affect these metrics? will we consider the accounts created during that period as "customers"?
