The Ultimate SaaS Unit Economics Tutorial

[@eric_andrews]

Questions? Let me know in the comments happy to discuss.

[@peterokon7666]

Ppppp

[@Dogs_france]

Why are implementation costs in the COGS ? Aren't they supposed to be in OPEX ?

[@eric_andrews]

@@Dogs_france cogs because they directly touch revenue and the customer. No solutions/implementation, no revenue.

[@vipulkatarnaware]

What about operations expenses like salaries, offices, etc.

[@BodhiTheMovieMaker]

Fantastic! Love the production quality of your vids!

[@eric_andrews]

Appreciate that!!

[@majoc9]

Thank you for the video! I found some apparent mismatch: - LTV uses total customers to calculate per-customer revenue/profit - CAC uses only new customers to calculate per-customer acquisition cost - When we divide LTV/CAC, we're comparing metrics with different customer bases What's your opinion?

[@TheBusinessHandyMan]

As somebody who is intrested in startups this definetly helps me on my journey.

[@eric_andrews]

Glad to hear it 🙌

[@facundogroisman6653]

Thanks for your content Eric ❤ It is amazing and helpful for all of the community

[@eric_andrews]

I'm really glad to hear that 🙌

[@Quran-q5m]

@@eric_andrewsi can make your videos more attractive and impressive u will like my service you need to improve your editing its should eye catching

[@DimitriGaldava-yi1rz]

Amazing breakdown and explanation. Always a pleasure listening and watching

[@eric_andrews]

Glad it was helpful 🙌

[@mor_gainz]

I love your content! But in 2024 I think you need to spend some cap ex and invest in a dynamic microphone and some acoustic panels for the walls.

[@eric_andrews]

Agreed, actually buying a couple upgrades right now as 2024 will be a big year of new content for me. Cheers

[@yaminyushwe3047]

Thank you for sharing. Love all of ur contents. ❤️

[@Deeneeshsu]

You are doing great buddy. Keep it up and post more useful video to get more organic growth.

[@eric_andrews]

Appreciate it! Working on it 😎

[@danielhartjes2479]

Great video, very informative. Thank you!

[@eric_andrews]

You are very welcome!

[@Muhassab]

Should the headcount cost be included in CAC? Like salaries for sales team and commission? And Thank you, you break it down in a way its so easy to understand. Appreciate you

[@eric_andrews]

Sure - usually sales & marketing, yes you should include for b2b saas. Everyone else, no.

[@Muhassab]

@@eric_andrews Thank you Eric. Appreciate it

[@emeric4579]

You didn't consider the churn rate when calculating the CAC payback period. Is it normal? Love your content!

[@eric_andrews]

Now THAT'S what I like to hear, you are correct and I'm glad you watched the payback video !! Using churn is better than how I showed in this video

[@emeric4579]

@@eric_andrews Thank you! I'm learning from the best haha

[@eric_andrews]

@emeric4579 glad to hear it, keep it up, and you'll know more than 99% of people in no time

[@DataDrivenDecisions]

What if I told you that there is a solution that allows you to find the optimal configuration of metrics, at which you achieve the target business values? and it works with any business model. interesting?

[@cdnsilverdaddy]

what are those terms? SasAm LTC, CAC, payback period etc?

[@eric_andrews]

SaaS = software as a service LTV = customer lifetime value, lifetime profit you make from a customer CAC= customer acquisition cost, marketing cost to get 1 new customer Payback period = how long it takes for a customer to pay for its own marketing cost (CAC), the CAC payback period. After you pay back the CAC, you start making a profit on the customer.

[@shahasarthouse1472]

Hi bro, can you discuss unit economics and ways to reduce costs of making a loan process?

[@eric_andrews]

Hi - can you be a little more specific? Unit economics refers primarily to your per-customer economics (customer retention, lifetime value, CAC, payback periods, gross profit, etc), were you asked for them in a loan process?

[@pjnyc8276]

Great video

[@eric_andrews]

Appreciate that

[@akramali6574]

❤❤

[@AbhishekSaxena-m5o]

Try to speak a little slow buddy.

[@eric_andrews]

You can always reduce the playback speed to 0.75 or 0.5 if I'm going too fast