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SaaS Articles – Summary

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This page summarizes the most popular articles and blog posts on this site covering SaaS (Software as a Service), and recurring revenue topics.  In addition to these articles, make sure to check out the 9 Step Startup Roadmap, which is highly relevant to SaaS companies. 

SaaS Metrics 2.0

The most important article is SaaS Metrics 2.0, which appeared early in the evolution of the SaaS space and instantly became one of the definitive resources on SaaS. It addressed many questions that both entrepreneurs and investors had about how to understand their SaaS business, and which metrics would have the greatest impact on success. It remains as relevant today as it was when it was first published and has many thousands of views every month.

Traditional accounting metrics like Bookings and those found in the Income Statement and Balance Sheet aren’t useful for judging the health of SaaS and recurring revenue businesses.  This blog post defines the metrics that are useful, and provides a sample Dashboard for management to track their SaaS business. The post led to almost universal adoption of the use of LTV:CAC and Months to recover CAC as crucial metrics to evaluate the long term profitability of a SaaS business. 

SaaS Metrics Videos

Here are two short videos where I cover the highlights of SaaS Metrics:

Other useful SaaS Articles

Provides SaaS entrepreneurs with an Excel spreadsheet model and graphs that show the cash flow trough that happens to SaaS or subscription businesses that use a sales organization
Discusses the cash flow trough that happens to SaaS, or other subscription/recurring revenue businesses when they decide to scale their business by ramping sales and marketing. Provides an Excel spreadsheet model and PowerPoint slide deck that can be used by readers to model their own data.