Software as a Service (SaaS) market leader and service provider Salesforce.com recently hosted a presentation by Bessemer Venture Partners, which has funded many of my favorite SaaS enterprises, including LinkedIn, Postini, Keynote, Eloqua, Skype, Force.com, and PTC.
- Know your key metrics: Committed Monthly Recurring Revenue, Churn, and Cash flow – “Bookings” is for suckers.
- Measure Long Term Value (CLTV – CAC).
- Tune before you scale.
- Separate “hunters” and “farmers”.
- Traditional IT channels don’t work in SaaS.
- Your sales prospects are online; online marketing is core.
- Stay local – know when to go global.
- One version of code, in just one instance.
- The most important part of Software-as-a-Service isn’t “Software” it’s “Service”!
- Bring funding. Enough to fund 4+ years of runway. Conserve cashflow.
Bonus Law: You can ignore one of these, but not more than two. Great companies innovate, but they also pick their battles.