Posts Tagged ‘profitability’

SaaS: Building the revenue momentum you need to achieve profitability

Tuesday, May 11th, 2010

Lots going on in Boston this month.  Just got back from an information-rich panel discussion offered by the Massachusetts Technology Council entitled: Tricks of the Trade – Building Revenue Momentum in SaaS.    Here are my notes.

SaaS revenue momentumProgram description

Unlike traditional software business models which are based on one-time license sales and lump-sum cash payments, the SaaS model is predicated upon building annuity-type revenue and cash streams. Over the long-term this business model is highly attractive, but especially for early-stage companies ramping SaaS revenues poses a unique set of challenges. MassTLC has gathered a panel of accomplished SaaS operating executives to share their insights on getting the initial revenue ‘flywheel’ turning and building sustainable SaaS enterprises.

Are discounts a good way to increase sales?

Tuesday, April 20th, 2010

Especially in a tough economy, companies often discount their products and services to increase sales.  The advantage of this approach is that it attracts attention–and has the potential to get prospects that ordinarily would not buy to try out your goods and services.  The hope, of course, is that once they experience what you have to offer that they’ll buy again.

The question is does it work?  And for whom?

Discounts do increase sales volumes

There’s no question that discounts increase sales volume.  To find evidence, you need look no further than to a Reuters article that ran earlier this month about automobile industry sales.