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