The Business of SaaS
Yikes, that was the best article on SaaS that I've read all year. So much great information.<p>A few things jumped out to me as off:<p>> Conversion rates of low-touch SaaS trials with credit card not required:<p>> 2%+: extremely good<p>Really? 2% seems awful. If a company signs up for your trial, they must have a problem they're trying to solve. If you don't solve 98% of peoples' problems, it seems like you have a problem getting people engaged with your product.<p>Our (bootstrapped low-touch B2B SaaS's) trial -> paid conversion is closer to 8%. This doesn't feel "extremely good". I think we can do much better.<p>> Virtually no low-touch SaaS business achieves net negative churn; their churn rates are too high to outrun.<p>What about Intercom and Front? Are they just outliers?<p>I would guess that this is actually true, but only because most low-touch SaaS business don't have scaling pricing - they have fixed plans. If you have pricing that scales with usage/value, you'll make much more each month from expansion revenue.<p>Overall I loved the article, and wish I could have read it a year ago before we launched our SaaS company. Thanks patio11 and Stripe.