SaaS Economics
Why Gross Margin Is Destiny in SaaS
Gross margin sets the ceiling on CAC payback, R&D budget, free cash flow, and valuation. Two SaaS firms with equal revenue but 80% vs 55% margin aren't the same.
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2 articles
SaaS Economics
Usage-Based Pricing vs Seat-Based Pricing
Usage-based pricing lifts net revenue retention but adds volatility. Seat-based is predictable but caps expansion. The choice is a strategy decision, not billing.