Subscriber Cannibalization and Other Mysteries in Content Marketing


This post is by Tomasz Tunguz from Tomasz Tunguz


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As I’ve described in a previous post, this blog’s goal is to create and sustain relationships with readers across the startup landscape. Tuning the engine is proving much harder than I expected and I suspect that content marketers are facing similar issues. For example, over the past 18 months I’ve witnessed a halving of RSS subscribers to this blog. They have fallen from about 4,000 to about 2,000. I wasn’t sure what the cause could be, until I compared the RSS data with email subscriber data.

Subscriber Cannibalization and Other Mysteries in Content Marketing


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




As I’ve described in a previous post, this blog’s goal is to create and sustain relationships with readers across the startup landscape. Tuning the engine is proving much harder than I expected and I suspect that content marketers are facing similar issues. For example, over the past 18 months I’ve witnessed a halving of RSS subscribers to this blog. They have fallen from about 4,000 to about 2,000. I wasn’t sure what the cause could be, until I compared the RSS data with email subscriber data. The chart above contrasts the two data sets. Clearly, email subscriptions are cannibalizing RSS subscriptions. Logically, the next question to ask then is how to maximize email subscribers. I wondered if the most popular posts generate more email subscribers. Surprisingly, no. Below is a table of all the blog posts bucketed by total visitors generated in quartiles. There are an equal number of Continue reading "Subscriber Cannibalization and Other Mysteries in Content Marketing"

My Surreal UberX Experience


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




Last week, I had a surreal experience with Uber. It was mid-morning on Friday and I pushed a button to request an UberX as I walked out of Sightglass, the coffee shop deep in the South of Market district. When the car arrived a few minutes later, I got in. Without saying a word, the driver passed me his iPhone. Confused, I looked up from my emails and he mouthed to me, “I am deaf.

My Surreal UberX Experience


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




Last week, I had a surreal experience with Uber. It was mid-morning on Friday and I pushed a button to request an UberX as I walked out of Sightglass, the coffee shop deep in the South of Market district. When the car arrived a few minutes later, I got in. Without saying a word, the driver passed me his iPhone. Confused, I looked up from my emails and he mouthed to me, “I am deaf.” I understood and typed in my destination in South Beach into his Google Maps and returned his phone to him. Away we went. A few clicks on my phone later, I found the gesture in sign language for thank you, touching my chin and moving my hand forward. I signed “thank you” as I stepped out of the taxi cab. During that drive, I marveled at the change in the world over the past Continue reading "My Surreal UberX Experience"

Reflections on YCombinator Demo Day: How the Seed Market Has Changed


This post is by Tomasz Tunguz from Tomasz Tunguz


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Earlier this week, I attended the Spring YCombinator Demo Day. I’ve been attending for six years now. Each time, I’m impressed by the intelligence, ambition and the polish of the founders presenting companies only a few weeks or months old. As I listened to the pitches, I wondered if the types of startups founders decide to build at YC has changed over time and whether those trends are lagging or leading indicators of the market as a whole.

Reflections on YCombinator Demo Day: How the Seed Market Has Changed


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




Earlier this week, I attended the Spring YCombinator Demo Day. I’ve been attending for six years now. Each time, I’m impressed by the intelligence, ambition and the polish of the founders presenting companies only a few weeks or months old. As I listened to the pitches, I wondered if the types of startups founders decide to build at YC has changed over time and whether those trends are lagging or leading indicators of the market as a whole. At each Demo Day, the YC team provides investors a list of all the companies pitching and I’ve kept a few. To get a sense of the broader trends in YC companies, I’ve compared the Winter 2012 class and the Spring 2014 class by sector (consumer v. enterprise), segment (ecommerce, education, social, gaming, delivery) and by revenue model (subscription, ads, transactional). These are the trends I observed in the data: Mild shift Continue reading "Reflections on YCombinator Demo Day: How the Seed Market Has Changed"

The Metrics-driven SaaS Business


This post is by Joel York from Chaotic Flow by Joel York


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saas business metricsMy first serious lesson in the criticality of SaaS metrics was about six years ago when I was unexpectedly stumped in a board of directors meeting. I had just presented the booking plan for the year and one of the Director’s in the meeting said that the plan was good, but we really needed to increase our booking rate. My first reaction was something like: “Well our current booking rate is pretty strong and we’re a SaaS business, so even with no immediate improvement to bookings we’ll continue to pile up revenue quarter after quarter, right?” Wrong! I had totally neglected the impact of churn. At the time, SaaS investors and executives were still getting their heads around the SaaS recurring revenue business model, so there were very few resources to turn to for support. Yet as the person in the room primarily accountable for the top line, I had to have the answer.

Fast forward to today. In 2014, we not only have a much better understanding of the financial levers that drive SaaS business success, we are on the verge of a metrics revolution in the way SaaS businesses are managed. Unlike licensed enterprise software, the SaaS recurring revenue business model offers a much higher degree of stability, measureability and predictability. These three factors form a foundation that enables SaaS executives to take a much more analytical approach to driving SaaS business success. SaaS business executives are uncovering new operational metrics that connect SaaS customer success to SaaS financial success, and in the process are creating recurring revenue machines. Today we are witnessing the emergence of The Metrics-driven SaaS Business.

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This is the first post in a new SaaS metrics series inspired by my ongoing collaboration with Bluenose Analytics. This series explores the promise of customer success metrics and their role as the glue that connects SaaS customer success to SaaS financial success. This first post discusses the unique qualities of SaaS that enable a more analytic approach to management than was possible with licensed enterprise software and introduces the concept of the Metrics-driven SaaS Business.

The SaaS Metrics Mandate

Why are metrics so uniquely important in SaaS? Continue reading "The Metrics-driven SaaS Business"

Benchmarking Box’s S-1 – How 7 Key SaaS Metrics Stack Up


This post is by Tomasz Tunguz from Tomasz Tunguz


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Yesterday, Box filed for its IPO and released its S-1. I enjoy going through S-1s because quite a bit about a private company is revealed and though only a subset of information is released, the S-1 discloses some very important details about the business operations. Over the past several months, I’ve analyzed the basket of the roughly 40 public SaaS companies many different ways. With the Box S-1 in hand, I can now benchmark Box’s business against other publics, and in particular, SaaS companies nine years after founding.

Benchmarking Box’s S-1 – How 7 Key SaaS Metrics Stack Up


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




Yesterday, Box filed for its IPO and released its S-1. I enjoy going through S-1s because quite a bit about a private company is revealed and though only a subset of information is released, the S-1 discloses some very important details about the business operations. Over the past several months, I’ve analyzed the basket of the roughly 40 public SaaS companies many different ways. With the Box S-1 in hand, I can now benchmark Box’s business against other publics, and in particular, SaaS companies nine years after founding. Box is also nine years old. Below are seven key comparisons between Box and the average public SaaS business. Box is among the fastest growing SaaS companies at this point in its life. Box’s revenue grew 110% in the last twelve months, about 2x the average rate of 53% of a SaaS company in its ninth year. The two closest companies in Continue reading "Benchmarking Box’s S-1 – How 7 Key SaaS Metrics Stack Up"

Startup Best Practices 6 – Avoiding the Bike Rack Effect


This post is by Tomasz Tunguz from Tomasz Tunguz


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Imagine a city council meeting with three agenda items: a $100M power plant zoning approval, a request to build a $10,000 bike rack for city sidewalks and and a $100 proposal to buy refreshments for the annual picnic. The power plant discussion takes all of 3 minutes to reach approval, as does the refreshment budget. But the $1000 bike rack debate drags on for hours as council members debate the right materials, the best color scheme and the right way to announce the project.