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Have You Adjusted Your Sales and Marketing Efficiency Metrics for Variable Revenue?

Have You Adjusted Your Sales and Marketing Efficiency Metrics for Variable Revenue?

SaaS Metrics School

July 28, 20233m 1s

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Show Notes

In episode #15, I address variable revenue and sales and marketing efficiency metrics. This is Pillar 5 in my 5 Pillar SaaS Metrics Framework. Variable revenue can be usage, processing, transaction, consumption, etc. Your traditional SaaS metrics will mislead if you don’t make important changes in the formulas.

- What is variable revenue?

- Do you have subscription revenue and variable revenue?

- We must add variable revenue to the equation

- We must margin adjust appropriately

- Estimates are involved; nothing is perfect

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