Counting beans and getting hit by a bus
Justin is worried about bandwidth costs and Jon is worried about getting hit by a bus.
This week, Jon and Justin are wrestling with some heavy startup founder topics:
- What should your SaaS company's gross margins be?
- How much is bandwidth going to cost us? How does it affect our margins?
- Example: [Account A] does 495,000 downloads in a month, average file size is 8 MB, that’s 3960 GB of bandwidth in a month. If bandwidth is $0.01 per GB, that’s $39.60 just for bandwidth for that one account. And that’s if we can get it that cheap. Otherwise, we’d pay $198 on AWS, or Azure. If we used Google Cloud it’d be $316.
- The burden of keeping our service up rests on Jon's shoulders. How can we reduce the risk?
- How can we increase platform resiliency, automation, and improve our internal customer service tools?
★ Thanks to our sponsors:
- Alitu.com: Alitu removes all the tech headaches associated with producing your podcast. They take care of processing, editing & publishing your podcast. Go to Alitu.com and check out their video demo.
- Podcastinsights.com: If you want to get into podcasting, check out Podcast Insights. They’re a great resource for folks who want to start and grow a podcast. Podcast equipment guides, how to make money. Join millions of readers learning all about how to start, grow, and monetize a podcast at podcastinsights.com.
- GetRewardful.com: Guess what? Affiliates is providing almost 30% of our revenue. Rewardful makes it easy for SaaS companies to start an affiliate program on Stripe.
- LeadEdge Capital: “Gross margins for SaaS typically range from 60% to more than 80%."
- Quora on SaaS gross margins.
- Most users don't realize how much bandwidth costs (Twitter)
- An explanation of bandwidth
- Is 1 GB equal to 1024 MB or 1000 MB?
- Z-cast closes up shop
- We're talking to someone at Cloudflare (tweet)
- Jamie's blog: Implementing Impersonation
You can reply to this podcast here:
- Leave a comment on Breaker, the podcast app for Android and iPhone.
- Leave a comment on CastBox, the podcast app for Android and iPhone.
- Otherwise, get us on Twitter: @transistorfm or email us: firstname.lastname@example.org
- Create your own podcast at transistor.fm
Thanks to our monthly supporters:
- Darby Frey
- Samori Augusto
- Dave Young
- Brad from Canada
- Kevin Markham
- Sammy Schuckert
- Dan Ericson
- Mike Walker
- Adam DuVander
- Dave Giunta (JOOnta)