2. Every 10 Years in Business Appsโฆ.
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Client Server (90s) SaaS (00s) Freemium (10s)
โTechnology is always becoming lower in cost and easier to use. Itโs
a continuum. Letโs ride it.โ
Marc Benioff
November 1998
Behind the Cloud, Play #6 Page 10
3. Disruptive Business Model (Really)
Clayton Christensen Disruptive Innovation
๏ฎ Simpler, easier, less
profitable (?)
๏ฎ New or hard to serve
markets
๏ฎ New business model
๏ฎ New financial model
๏ฎ New leaders
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4. Business Apps Markets by Model
4
Client Server
SaaS (20-500 EE)
Freemium (<10 EE) & QuickbooksWas Hard to Serve
Company Size
Freemium companies are servicing new global markets from the start
5. Freemium vs SaaS Business Models
5
Marketing Churn &
Satisfaction
Sales
Product &
Pricing
โข Different functional and cross functional work
โข New operating metrics
Trial
Experience
6. Freemium vs SaaS Financial Model
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Linearity
Capital
Requirements MetricsHeadcount Core Assets
Paying Subs
Brand
Salespeople
Active Free Users
Data to Mine
Paying Subs
Autoconversion
CAC
CLV
โข Non-linear financial model
โข Investors should focus on CLV
7. Accelerating Growth and Capital
๏ง Growth Opportunities
๏ฎ Virality
๏ฎ Engagement
๏ฎ Conversion
๏ฎ Customer satisfaction
๏ฎ Use the data
๏ฎ International
๏ฎ New editions (groups)
๏ฎ Marketing and โSalesโ
๏ฎ Marketplaces
๏ฎ Mobile
๏ง Venture Capital
๏ฎ Religion?
๏ฎ Market leadership
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