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Showing posts from August, 2020

What is revenue attribution and why is it so important?

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Once you’ve hit the $1M ARR mark and built out your go-to-market teams your organisation will most likely be deriving revenue from a mix of sources. These vary a lot, but might include a Sales Development Rep (SDR) team, salespeople sourcing deals themselves, partnerships, events, paid ads or content marketing. Being overly-focused on one source usually means that you're leaving opportunity on the table, and so it makes sense to see a bunch of sources at companies that have achieved some scale. Diversifying your demand generation is great for broadening the top of your funnel, but it does add additional complexity to your go-to-market engine and make things more difficult to manage. One of the tricky problems this introduces is revenue attribution. Once you have more than one source of revenue, you'll need to start deciding how to give sources "credit" for revenue. There are a few different methodologies you can use here, and each will have a different impact on the m

Thoughts on setting prices in new markets

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When entering new markets one of the big, difficult-to-reverse decisions you need to make is what price to set. This is a tricky question that involves both human, analytical, and operational components to your decision-making and is important to consider carefully. Pricing is one of the most important activities your startup will undertake. Infact a 1% increase in price leads to an 11% increase in profitability on average! Unfortunately pricing in early stage tech startups has usually been more art than science, and founders often feel lost trying to make decisions. So where to start? Setting a publicly-announced price is a high-commitment decision that is difficult to back out of, especially if you've already established a home base. Starting with baby steps in the form of temporary targeted promotions, test prices with pilot customers, or other limited forms of experiments will allow you to get a sense for what works while not committing yourself to a price that might not be ri