Posts Tagged ‘Business Model’

Last updated by at .

“Software is eating the world” – Marc Andreesen Companies thriving in the new world order have technology as a core competency. They build complex cloud applications. They constantly bring new capabilities and features to the market. And despite the constant iteration and updates to their cloud application, their...

It will surprise a lot of entrepreneurs to learn that building an e-commerce business with $10 million to $20 million in revenues is not that hard. It also surprises many to learn that it’s not actually that valuable. This is in stark contrast to, say, a SaaS business, which is very difficult to build to that level...

I presented the following set of slides to the Mass TLC group as the keynote for the “SaaS Business Model Update — Creating and Managing Revenues” event. The slides should be useful for anyone interested in learning about the key drivers for a SaaS business, including the SaaS cash flow trough, cost of customer...

Presentation describing how Cost of Customer Acquisition (CAC) and Monetization (LTV) are they key elements to get right for a successful business model. Also describes the latest techniques for reducing CAC, including Inbound Marketing, and the author’s own methodology: Building a Sales & Marketing Machine. This...

How SolidWorks grew to $400m a year in revenues by helping their VARs become world class business leaders. SolidWorks was started back in 1993 with the vision of bringing solid modeling for mechanical design to the masses. Before SolidWorks entered the market, solid modeling was only available from PTC at $20,000 per...

A short study of this web site reveals that a hugely important factor for success in startup companies is finding ways to acquire customers at a low cost. In the Business Models section, we looked at the perfect business model: Viral customer acquisition with good monetization. However viral growth turns out to be an...

This post is part of my series An Analysis of 5 Business Models. Channel sales can be used to create extremely successful business models. The channel gives powerful leverage to an organization, adding additional sales resources, and taking advantage of existing customer relationships that the channel partners bring...

This post is part of my series An Analysis of 5 Business Models. Direct sales using a field salesforce is one of the most expensive ways to pursue customer acquisition, and as a result only works for larger deal sizes. There are several significant challenges with building a field salesforce in the high tech...

This post is part of my series An Analysis of 5 Business Models. Many businesses talk about Viral marketing, but in reality, only a few are actually able to pull off true viral marketing. The effect of viral marketing is that a company can acquire their customers without spending any marketing dollars. The internet is...

This post is part of my series An Analysis of 5 Business Models. One of the most powerful techniques available for customer acquisition is giving away a free product or service. You can see the success of this with companies like Google, Facebook, JBoss, MySQL, HubSpot (with their free WebSiteGrader.com), etc. One of...

This post is part of my series An Analysis of 5 Business Models. Recurring revenue is the business models that I prefer. It has the benefits of being highly predictable over time, and reducing the stress of having no revenue at the beginning of a quarter unless you go out and make new bookings. The major disadvantage...

In the past most startups occurred because a new technology had come along that would provide solution to a problem that could not be solved previously. (As an example, an unmet need was the pain of creating and editing documents. The solution was word processing, and the technological trigger that made this possible...

Reason 1: Market Problems A major reason why companies fail, is that they run into the problem of their being little or no market for the product that they have built. Here are some common symptoms: There is not a compelling enough value proposition, or compelling event, to cause the buyer to actually commit to...