More Related Content Similar to Making Money with Saas @ Seattle Startup Day (20) More from Twilio Inc (20) Making Money with Saas @ Seattle Startup Day6. Reduce
Costs
Measurable Value
OR
Increase
Revenue
7. No measurable value?
Stick ad
s on it!
X
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advertisement
10. Start
No Does my service Yes
generate value?
Back to the drawing
How Much Value?
board
13. Target Margin: 50% (0.5)
Costs: $10
Price = $10 / (1-0.5)
= $20
Price = Cost / (1-m )
14. What if your unit costs are basically zero?
Web Server Web Server
MySQL
$200 / mo
16. Are they...
...saving money
by replacing a more expensive solution?
HOW MUCH?
...saving money
on efficiency because of you?
HOW MUCH?
...generating more revenue
because of you?
HOW MUCH?
18. Cost Based Value Based
sanity
$$$
check:
do they
Competition converge?
29. Raise prices if
merited, but
don’t fool
people :)
Start conservative,
drop prices if needed
34. Figure out value generated
Test with Potential Customers
Free Private Beta
Go Public with a Price Tag
Adjust as necessary, ideally down.