dzone.com – Would you put a lot of money into an investment without a guaranteed return? What if I told you that you would only get your investment back through a slow trickle over an extended period? Doesn’t that sweeten the deal? No I am sure it does not. You would maybe think twice about investing, and rightly so. This is the common dilemma with SaaS business models. This is why so many companies use SaaS metrics to help move forward.
For this reason, metrics are extremely important in determining the viability of the product and the company future. This is due to the fundamental difference of SaaS companies taking all the expenses of a product up front and waiting for the long term loyalty and value of their customers to regain their investment. Once a solid set of customers is established however, profit growth grows exponentially.
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