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Harvard Innovation Labs Cast

02/02/14

@ Harvard Innovation Labs

In a SaaS business model, long-term subscriptions change the visibility of revenue, allowing for more accurate forecasting based on customer retention and upsell rates.

Video

Harvard i-lab | Startup Secrets: Business Model

@ Harvard Innovation Labs

Harvard i-lab | Startup Secrets: Business Model

02/02/14

Related Takeaways

Harvard Innovation Labs Cast

02/02/14

@ Harvard Innovation Labs

The shift from selling products to offering services or subscriptions can lead to predictable revenue streams and increased customer retention.

Aaron Epstein

12/16/22

@ Y Combinator

Software as a Service (SaaS) is a cloud-based subscription model where customers pay monthly or annually to access software.

Ilya Volodarsky

08/01/19

@ Y Combinator

Revenue is a crucial metric for subscription businesses; track it through events like subscription upgrades to set growth goals.

Macy Mills

05/17/25

@ a16z speedrun

Subscription-based pricing offers predictability for both businesses and customers, often combining user-based pricing with monthly or annual subscriptions.

Suhail Doshi

09/12/18

@ Y Combinator

Measuring revenue churn is critical for subscription-based businesses, as it helps you understand how many customers are leaving your service.

Aaron Epstein

12/16/22

@ Y Combinator

Recurring revenue models are crucial for startup success, as they provide predictable income and higher customer lifetime values.

Adora Cheung

08/01/19

@ Y Combinator

Your primary metric must capture whether your product provides recurring or enduring value to users, such as monthly recurring revenue for SaaS tools.

Aaron Levie

02/20/25

@ Y Combinator

Successful companies are increasingly replacing traditional services with usage-based models, leading to rising revenues without the need for annual contracts.

Macy Mills

05/17/25

@ a16z speedrun

Blending usage-based pricing with subscription pricing can provide predictability while allowing for growth, especially for AI startups.