I saw this on YouTube last year and thought it was worth a mention. This is a SaaS model business sharing some interesting thoughts and stats. I find it really interesting hearing other companies facts and figures… I used the company’s solution iContact a while back. I remember they had a great knowledgebase – which must help them reduce support load cost.
Interesting that they have a low price point ($5 per user) yet have remained profitable. Not suggesting that all SaaS co’s should have a low price (as all have different business models), just interesting to see the numbers…
These are the facts I picked from the video… Interesting…
Product: Email Marketing Software
- Started 2003
- $2.9 mill turnover 2006
(took 500k investment, spent $440k on marketing)
- $6.3 mill turnover 2007
- 420k p/m recurring revenue
From 9000 customers (80,000 users)
= $5 per user p/m
= 10 users per company
- Adding 1000 users per month currently
Each company worth $50 per month
- Bootstrapped to 2006, then took $500k VC investment. in 2007, they spent $440k ($8400 p/week) in online advertising (increased revenue $4 million)
- A Competitor raised $32 million to do the same thing.
- Spent heaps of the $440k on Articles, Blogging, forums
Interesting and good on them! I’m keen to hear of any other vids showing company stats for web cos…
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About the author:
Julian Stone, CEO – Project Management Software visionary for: ProActiveSoftware.com, ProWorkflow.com & Julian101.com
About The Author:
Julian Stone begin_of_the_skype_highlighting end_of_the_skype_highlighting is the CEO of ProActive Software, developers and creators of the leading web based project management software http://www.proworkflow.com.