What is Saastr’s business model?
It’s not entirely clear we have a “business” model quite yet. My SaaStr, Inc. salary is currently $ 0 (though that should change in 2019). But we’re getting there.
- SaaStr Events+Media. This business was $ 0 two years ago and should do $ 10m+ this year. But, the margins overall are relatively low. See SaaStr Annual 2018 | The Biggest SaaS Event on the Planet etc. This could be profitable if we spent less per attendee, but, we spend a lot and our ticket prices are lower-than-average. Not low anymore, but lower than similar events in SF Bay Area. We lose about $ 300 per attendee at the Annual and make it up on sponsorships.
- SaaStr CoSelling Space. We have 18,000+ sq ft of super-cool space for SaaS startups in SF right in SOMA.CoSellingSpace.com. We love working here ourselves and super cool companies work here. But, it loses money on a burdened basis.
- SaaStr Pro (and soon, Prime). This is new, but off to a good early start. It likely will generate about ~$ 1m this year. We are using software and automation to help CEOs train their teams. Again, if you can make a handful of fewer key mistakes, and take a few key actions earlier … everyone can scale faster. Almost always. More here: SaaStrPro.com
- SaaStr Fund. The investments are good, but it’s early, and the fund is run separately from the other businesses. The investments prior to the fund are doing really well (Algolia, Talkdesk, Logikcull, RainforestQA, Pipedrive, etc.), but this is a very long-term bet financially.
- Give Back, Add Value to the World. This is where it all started and what it is about. Building relationships with great founders and executives, inspiring the next generation, being a positive force in the world of business software. Without this, it would be pointless.
Overall, the goal is to grow this to about $ 100m in revenues, with the main goal helping founders and executives grow faster with fewer mistakes. While having fun with a great team while we do it.
We’re about 10% of the way there after 5+ years. With Dayna Rothman joining us as CRO, I feel pretty bullish now about the Next Five+ Years.