Freemium BM. (1) What consumer Internet companies had a large number of users but failed to monetize.
The subscription economy is here. Are you ready? Editor’s note: This story is part of our Microsoft-sponsored series on cutting-edge innovation.
Tien Tzuo is founder and CEO of Zuora, an online subscription billing and payment company. Just as the Web rocked the bricks and mortar world of business 15 years ago, the burgeoning subscription economy is forcing today’s enterprises to change how they do business. Business Model Analysis, Part 6: LTV and CAC. This post is part of a series on business model analysis for entrepreneurs.
The first post in the series presents a comprehensive list of issues (available as a downloadable PDF) entrepreneurs should consider when designing a business model. Others delve into specific issues; this one provides an overview of customer lifetime value (LTV) and customer acquisition cost (CAC) calculations, and how they are used in startups. [Case Study] How a Pay-What-You-Want Pricing Model Can Generate More Revenue. Multi-axis Pricing: a key tool for increasing SaaS revenue. Scalable pricing is a powerful tool to grow revenue in a SaaS or software business. It allows you to capture more of the revenue that your customers are willing to pay, without putting off smaller customers that are not able to pay high prices.
It also provides a great way to continue to grow revenue from your existing customers. This post looks at how to create scalable pricing using multiple pricing axes, and discusses the different types of axes that can be used.
Growth hacking: leading indicators of engaged users - Richard Price. I went to the Growth Hackers conference in Menlo Park last Friday.
Among the speakers were people who had headed up growth teams at Facebook, Twitter, LinkedIn, Zynga, and Dropbox. One of the themes that came up a lot was the idea of the growth team finding a leading indicator of a user who would turn into an engaged user later on. The growth team would then focus on optimizing for that metric. Here are how the companies thought about that leading indicator. Facebook.