Lets do a deep-dive to start this week off:
Matt Wensing, maker of Summit tweeted about one of the relevant health metrics for a SaaS company: cohort survival curves. The metric describes how many subscribers of any cohort will still be subscribing at N months. The following describes what shape different metrics might take:
Matt Wensing on Twitter - survival curves
The sedimentary lines on these charts are survival curves. Top left is normal (weak) case. Bottom right is spectacular. https://twitter.com/mattwensing/status/1162389996394991616?s=21
Given it's relative importance, lets expand:
To expand further, Matt also shared what SaaS terminal velocity (when acquisition can no longer outpace churn) looks like:
What are good % retention numbers you ask? There's some data to accompany the above Twitter thread as well.
Zero to Sold: The Bootstrapper's Compendium - reading time 113 minutes
Welcome to Zero to Sold. This companion guide will introduce you to the world of bootstrapping a sustainable business. It will make you familiar with how bootstrapped enterprises are created, ran, grown, and sold.
The Power of the Niche - reading time 11 minutes
If you were to found a company that makes and sells beer today, you would probably start a craft brewery. You’d start a small operation, find the people who enjoy your product and slowly expand your business. You would not try to compete with Bud Light and Heinecken for shelf space.
What are the possible revenue models for a mobile app? - reading time 7 minutes
You may have noticed that Google revenue estimates have been available on AppTweak for a couple weeks. You can now see the revenues of any app in any country for Android and iOS.
A visual takedown of what makes the Morning Brew so successful.
Pieter Levels on Twitter - on micro niches
Micro niches https://www.indiehackers.com/post/so-im-not-original-enough-9754c22b41?commentId=-LzfVeAawAU02iCqLgcP
With the most important statement being the following: "Capturing 0.000014% at $10/mo of the world results in $10,000/mo." To which the following tweet expanded the obvious:
Robin Vander Heyden on Twitter - on fewer customers with a higher price tag
You can also create a productized service business and reach that amount with even less customers. $10k/month is... : - 50 customers at $199/month - 25 customers at $399/month - 10 customers at $999/month
Building Sales & Success from the ground up with Notion's David Apple - watch time 16 minutes
As the first Head of Sales & Success at Typeform then Notion, David Apple will present his framework for building Sales & Success from the ground up. In this talk you'll learn: - A founder's role in Sales & Customer Success - Best practices for making your first Sales hire - How to maintain a product-led culture as you scale - Setting the right Sales & Success KPIs - Best practices for driving Marketing and Sales alignment.
This Google sheet provides a quick overview about how much ultimately goes into your pockets.