Monthly Archives: August 2010

Investment As Marriage

It’s been said many times that accepting an investment from a VC is like getting married to them.  In general that’s a reference to the fact that you’ll be “courting” each other, getting hitched, and then spending a lot of time together.  All of this is true, but, unlike VC’s and investments, few love-struck couples think [...]

ARPU

I’ve had to attach the PDF for this post here   ARPU — couldn’t get Word tables to paste into WordPress. /d

Gross Margin and SaaS

Another day another topic, or so it seems.  This time Gross Margin and SaaS. If you’re selling a product with a one-time price, revenue is easy to determine – it’s basically the sales price. The Gross Margin (a financial metric that is very meaningful in real products – like washing machines or routers) is defined [...]

Pricing

There have been a few questions floating around recently regarding pricing, and much of the information available on the web is either way too academic or downright stupid, so I thought it was time to answer them all at once.  I’ve never come across a methodology for pricing, rigorous or otherwise, so this is a [...]