ProfitWell Report

Weekly subscription and SaaS benchmarks from ProfitWell

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Every week Neel Desai (product at ProfitWell) brings a new set of benchmarks from the world’s largest recurring revenue data set in the world, to answer questions like "will all software become freemium?" and "how much expansion revenue is healthy?"
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Launch tags:Marketing•SaaS•Tech
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What do you think? …

Hiten Shah
Hunter
The ProfitWell folks are back at it again. With this video series full of benchmarks. 3 minute videos, full of useful SaaS insights. What more could you ask for?
Alexander Caravitis

If you're a SaaS founder, you need to check this out

Pros:

Consise, usable data

Cons:

no cons

Mary Matton
Do you ever find that the data you’re gathering creates more questions than what you’re trying to answer?
Patrick Campbell
Maker
@mary_mallard yea this is pretty much how it works. Answers beget more questions as you go deeper and deeper down the research rabbit hole. :)
Eileen Lent
Love the content!! What’s your threshold for the number of data points in any given study? I’ve notice it fluctuates with each report - wondering if there’s a minimum amount you use.
Patrick Campbell
Maker
@eileen_lent this is a great question, because statistical significance isn't a specific number (measure of variance) and all data has limits. We try to be exceptionally intellectually honest with the data we publish, making sure things are always as transparent as possible. As such, there isn't necessarily a minimum (although we likely wouldn't publish something lower than 100 data points).
Eileen Lent
@patticus thanks! :)
Rob Litterst
Hey Neel, our freemium posts have done really well, and there is definitely an expanding market for freemium, but we know not all companies should offer a freemium product. Do you have plans to create an episode on freemium failures and the characteristics of a company that should not have a freemium product?
Neel Desai
Maker
@robbylit Totally - while it's a fantastic acquisition strategy, it's not for everyone. We'll take a deeper dive into what market conditions lend itself well to Freemium and when one might want to avoid it!
Harris Smriko
Being in Customer Success, The Profitwell Reports help me think more analytically about my approach.
Neel Desai
Maker
@harris1210 Love to hear that Harris! Anything specific you'd be curious about us diving deeper into?
Ian Black
Love last season’s episode on Freemium. It’s incredible how CAC has increased by almost 70% over the last 5 years. Patrick/Neel, where do you see that trending in the next 5 years?
Neel Desai
Maker
@ian_black1 As software becomes even *easier* to build, it's likely this will continue to go even higher. Crazy to think about, but the density in the market right now is just crazy and it's becoming harder and harder to stand out among the many options customers have and attract customers. Why we think more folks will experiment with Freemium :)
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