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Startup Business Models 101
www.asaas.com
Why I’m telling you this
I’ve been working with startups and SaaS applications since
2008.
Built and sold a software house with focus on those businesses.
Own shares in four different companies: Asaas, ContaAzul,
GuiaBolso, motoboy.com
Currently working as CEO of Asaas, which i’ll explain more in a
few moments.
www.asaas.com
#define BUSINESS_MODEL
Since the beginning of times, entrepreneurs had looked for ways
to make profit.
A Business Model is a way a company can get profit by selling
something to its customers.
www.asaas.com
BM’s from real world
In the real world, where you can clearly understand the value
proposition of a venue, or a factory, a BM might seem more like
a commodity, that you can find in a business book than a
challenge to a organization.
But things are changing as fast as we didn’t had before, and
even those businesses are in desperate need to improve their
models.
www.asaas.com
Startups
www.asaas.com
A Profitable Business Model
Profitability is completely independent from customer traction.
A startup might have millions of users, and no way of making
any cash.
www.asaas.com
Common Startup BMs
SubscriptionOn Demand
Pay per Use "Free"
www.asaas.com
On Demand
They where the first and simpler ones to build.
PROS: It is a simple relationship, you offer your product, the
users buys and you deliver it however you can.
CONS: They don’t generate recurring revenue and require
continuous investment in marketing strategies.
www.asaas.com
Subscription
Theses guys are the pretty girl of the moment.
But are really hard to turn profitable.
PROS: If you can make them work, you earn cash “forever”,
because of the recurring revenue.
CONS: Usually your ARPU is way below your CAC so you need
to have a lot of customers to dilute your cost and turn to profit.
www.asaas.com
Pay per Use
This model is the newest guy on the band.
Your customer acts like a subscriber, but does not pay anything
unless he uses your service.
Probably the hardest to turn profit.
PROS: You can charge your customer the real cost of the service,
in contrast to a SaaS BM.
CONS: You have to make your service insanely sticky, you
customer must absolutely love your service the first time he users,
so he might come back someday.
www.asaas.com
"Free"
There is no free lunch, you know that right?
In this model, the end user doesn’t pay for anything.
Instead he is the product being sold to someone who actually
pays, and usually a lot.
PROS: Your CAC goes nearly to zero, because everyone can use
and does not have any cost involved.
CONS: You need to get a insane amount of users to get any
profit, and also a awesome bizdev team to sell it to anyone.
www.asaas.com
What is the best?
If you are not sure what to go for, A/B test them as fast as you
can.
www.asaas.com
And the metrics?
This is the catch.
Each BM has its own set of key metrics that must be learned thru tests.
In Asaas, we learned that, instead of CAC (Customer Acquisition Cost),
we had to look for BAC (Bill Acquisition Cost).
And instead of ARPU (Average Return per User) we track ARPB (Average
Return per first Bill)
www.asaas.com
The Sharing Economy
Everyone is talking about how it is changing the way we consume
goods and services.
In fact, this guys will change the game back to the people, and this
is good.
But they are not business models by themselves, they are just new
ways of focusing on single tasks, like Uber focus on making an
awesome app to get a driver, and not employing any driver at all.
Because of this, they can be insanely good on what they do.
Thanks!
Contact: piero@asaas.com
www.asaas.com
Want to JOIN ASAAS?
E-mail talentos@asaas.com.br!

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Semana da computação UDESC 2015 - Startup Business Models 101

  • 2. www.asaas.com Why I’m telling you this I’ve been working with startups and SaaS applications since 2008. Built and sold a software house with focus on those businesses. Own shares in four different companies: Asaas, ContaAzul, GuiaBolso, motoboy.com Currently working as CEO of Asaas, which i’ll explain more in a few moments.
  • 3. www.asaas.com #define BUSINESS_MODEL Since the beginning of times, entrepreneurs had looked for ways to make profit. A Business Model is a way a company can get profit by selling something to its customers.
  • 4. www.asaas.com BM’s from real world In the real world, where you can clearly understand the value proposition of a venue, or a factory, a BM might seem more like a commodity, that you can find in a business book than a challenge to a organization. But things are changing as fast as we didn’t had before, and even those businesses are in desperate need to improve their models.
  • 6. www.asaas.com A Profitable Business Model Profitability is completely independent from customer traction. A startup might have millions of users, and no way of making any cash.
  • 8. www.asaas.com On Demand They where the first and simpler ones to build. PROS: It is a simple relationship, you offer your product, the users buys and you deliver it however you can. CONS: They don’t generate recurring revenue and require continuous investment in marketing strategies.
  • 9. www.asaas.com Subscription Theses guys are the pretty girl of the moment. But are really hard to turn profitable. PROS: If you can make them work, you earn cash “forever”, because of the recurring revenue. CONS: Usually your ARPU is way below your CAC so you need to have a lot of customers to dilute your cost and turn to profit.
  • 10. www.asaas.com Pay per Use This model is the newest guy on the band. Your customer acts like a subscriber, but does not pay anything unless he uses your service. Probably the hardest to turn profit. PROS: You can charge your customer the real cost of the service, in contrast to a SaaS BM. CONS: You have to make your service insanely sticky, you customer must absolutely love your service the first time he users, so he might come back someday.
  • 11. www.asaas.com "Free" There is no free lunch, you know that right? In this model, the end user doesn’t pay for anything. Instead he is the product being sold to someone who actually pays, and usually a lot. PROS: Your CAC goes nearly to zero, because everyone can use and does not have any cost involved. CONS: You need to get a insane amount of users to get any profit, and also a awesome bizdev team to sell it to anyone.
  • 12. www.asaas.com What is the best? If you are not sure what to go for, A/B test them as fast as you can.
  • 13. www.asaas.com And the metrics? This is the catch. Each BM has its own set of key metrics that must be learned thru tests. In Asaas, we learned that, instead of CAC (Customer Acquisition Cost), we had to look for BAC (Bill Acquisition Cost). And instead of ARPU (Average Return per User) we track ARPB (Average Return per first Bill)
  • 14. www.asaas.com The Sharing Economy Everyone is talking about how it is changing the way we consume goods and services. In fact, this guys will change the game back to the people, and this is good. But they are not business models by themselves, they are just new ways of focusing on single tasks, like Uber focus on making an awesome app to get a driver, and not employing any driver at all. Because of this, they can be insanely good on what they do.
  • 15. Thanks! Contact: piero@asaas.com www.asaas.com Want to JOIN ASAAS? E-mail talentos@asaas.com.br!