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Invest Like the Best with Patrick O'Shaughnessy cover image

David Sacks - How to Operate a SaaS Startup - [Invest Like the Best, EP. 234]

Invest Like the Best with Patrick O'Shaughnessy

NOTE

The Economics of B2S and B2B Subscription Businesses

The economics of B2B and B2S subscription businesses were analyzed. Individual products have high churn rates, while B2B subscriptions have lower churn rates and allow for expansion./nB2B subscriptions have a monthly churn rate of approximately 2%, while individual products typically have a churn rate of 5% or higher./nB2B subscriptions have the advantage of adding more co-workers and selling more seats, resulting in net expansion./nOpen Phone is an example of a company that started with an individual product and later added a team experience./nFounders often start with a single player mode before introducing a multi player mode in their products./nIndividual products, such as Open Phone's business phone app, can retain customers well but still experience net churn.

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