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When To Recognize SaaS Revenue
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m subscription-based pricing models, where customers pay a regular, periodic fee (e.g., monthly, quarterly, or annually) to access and use the SaaS product. Recurring revenue can be thought of as predictable and stable income for a SaaS company because it represents the income that can be expected to repeat over time as long as customers…
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Top Ten Clauses to Include in SaaS Contracts
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Getting your SaaS contracts into a good shape will help you build and de-risk your SaaS business. Your SaaS contracts are the concrete legal representation of your relationship with your customers. They can help you or harm you, especially in the long run. So here are the top ten clauses to include in SaaS contracts.…
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What is an Autorenewal Clause?
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Renewals for software as a service startups can be one of the biggest killers of growth. They are a hole in the bottom of the revenue bucket that keeps leaking while you’re trying to add new customers on. One of the common way’s that companies look to help renewals is by using a autorenewal clause…
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How To Build An MRR Waterfall
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A Monthly Recurring Revenue (MRR) waterfall report is one of the most important tools for SaaS startups seeking to gain a holistic view of their subscription-based revenue and how this is growing. To build an MRR waterfall is to trace the flow of revenue through various channels within a given month, providing an overall snapshot…
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What is an SOW?
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In the world of Software as a Service (SaaS) startups and scale ups, effective contract control and management for your sales contracts is essential for success. One crucial tool in your contracting and sales process is the Statement of Work (SOW). But what exactly is an SOW, and how can it benefit your SaaS startup?…
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SaaS Enterprise Contracts – A Quick Guide
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So you’ve started a software as a service company selling to enterprise customers? Congratulations! A long road waits ahead of you but once you get a few of those large logo’s signed you’ll be flying. When it comes to SaaS enterprise contracts and getting those signatures things can be confusing, so we’re written a quick…
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How to Extract Data From Contracts
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So you’ve started to scale your business and you’ve signed a lot of contracts? Great! What you’ve agreed to in the contracts is trapped in PDF’s that you have to constantly reference to understand your customers? Not so great. Knowing how to extract data from contracts is a hairy subject. PDF’s are great for the…
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When Do I Use Contract Redlines?
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If you’re a startup selling a B2B software you might be asking ‘when do I use contract redlines?’ It’s a great question. You have to choose between going down the route of having standard terms and conditions and making every contract custom. So when do I use contract redlines? The simple answer here is ‘when…
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What is a MRR Waterfall?
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Understanding what is a MRR waterfall is a question that comes up a lot for early stage startup founders. A MRR waterfall is a common report that software as a service (SaaS) companies need to maintain to track their growth. Effectively it is a record of all of your customers and the amount of income…
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