All Episodes
Episodes
COGS vs. OpEx | Why Is This SO Important?
In episode #11, I address COGS vs Operating Expenses (OpEx). The coding between COGS and OpEx is critical. It requires a proper department structure and chart of accounts. Mess this up and your margins and metrics...
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Should Customer Success Be Coded to COGS or OpEx or Both?
In episode #10, I address a hotly debated topic. Where should your customer success team be coded? And it depends, of course. It can correctly fall in COGS or OpEx or both.
- The case for CS in COGS
- The case for CS...
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Your SaaS Cost of Goods Sold (COGS) Is Probably Wrong
In episode #9, I address your SaaS cost of goods sold. I review a lot of SaaS P&Ls, and I’d say 90% are set up incorrectly. It’s so important to set up your P&L correctly to manage your business and calculate...
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Are You Tracking Your Renewal Rate?
In episode #8, I talk about renewal rates, when it’s applicable, and how it differs from revenue retention. If you invoice annually and/or sell multi-year contracts, you must track your renewal rate. It’s a nice...
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Your MRR Schedule Could Cost You Millions in Valuation
In episode #7, I talk about the importance of your MRR schedule and the metrics that result from this schedule. It’s a top due diligence request. Nothing like DD to make you question your numbers.
- What is an MRR...
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What’s the Difference Between Forecasting, Planning, and Budgeting?
In episode #6, let’s talk about planning. Or is it budgeting? Wait, no it’s forecasting. Let’s talk about the differences in these terms. Either way, the dreaded budget season is approaching this Fall if you are on...
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Should I Segment My SaaS Metrics?
In episode #5, I talk a bit about the SaaS metrics journey. Should we calculate metrics in aggregate or by segment? By customer profile or ICP? SaaS metrics can be dangerous to your financial health if you aggregate...
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CAC Payback Period | One of My Favorite Metrics
In episode #4, I discuss the meaning of the CAC Payback Period. It’s a top operator and investor metric. Cash must be allocated wisely, and the payback determines how long your capital is tied up in new customer...
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What Does CAC Mean
In episode #3, I discuss CAC, or Customer Acquisition Cost. CAC can be gross dollars or a unit cost. Screw up your CAC calculation and it affects CAC Payback Period and your Cost of ARR. CAC is fundamental to your...
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You Need to Allocate Your Sales and Marketing Expenses Between New and Expansion
In episode #2, I break down the new versus existing allocation that is needed for your sales and marketing expenses. If you are going to calculate CAC and other sales efficiency metrics correctly, you must allocate...
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What is the Cost of ARR
In the first episode, I talk about my favorite SaaS metric, the Cost of ARR (aka SaaS CAC Ratio).
Highlights:
You can calculate blended, new, and expansion
Requires new and expansion bookings data
Need total sales...
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