Presentation deck from SaaStock 2019

1. Brought to you by
Not being terrible.
OCTOBER 2019

2. Brought to you by
Finding leverage and seeking truth.
BUILDING FOR THE LONG TERM

3. Want the slides or data referenced?
patrick@profitwell.com

4. Brought to you by
Some background.

5. We plug into your subscription management
system and automate revenue growth.
Brought to you by

6. Brought to you by
PROFITWELL
Free financial metrics for
subscription businesses.

7. Churn
tribution
Financial
Unit
Price
Survey
Willingness to
In-App Usage
Drastically reduce churnRETAINTM
Audit proof revenue recognition
RECOGNIZED
Proprietary pricing software for
monetization
PRICE INTELLIGENTLY

8. PROFITWELL HISTORY
PW Revenue Under Management - $10BN ARR
ARRUNDERMANAGEMENT(INBILLIONS)
$0
$2
$5
$7
$10
$12
2013 2014 2015 2016 2017 2018 2019
PROFITWELL HISTORY
Brought to you by

9. 85 Homies

10. $0 in Funding

12. Brought to you by
Leverage.

13. Few of us have a solid framework
for evaluating leverage.
Brought to you by

14. THE FREAKOUT CYCLE OF
EXECUTIVE EMOTION
— YOUREXPERIMENTALDESIGN
Bad Thing Happens

15. THE FREAKOUT CYCLE OF
EXECUTIVE EMOTION
— YOUREXPERIMENTALDESIGN
Bad Thing Happens
This is important

16. THE FREAKOUT CYCLE OF
EXECUTIVE EMOTION
— YOUREXPERIMENTALDESIGN
Bad Thing Happens
This is important
The reverberation of
“fuuuuuckkkk”

17. THE FREAKOUT CYCLE OF
EXECUTIVE EMOTION
— YOUREXPERIMENTALDESIGN
Bad Thing Happens
This is important
Guess & Check 1
The reverberation of
“fuuuuuckkkk”

18. THE FREAKOUT CYCLE OF
EXECUTIVE EMOTION
— YOUREXPERIMENTALDESIGN
Bad Thing Happens
This is important
Guess & Check 1
Guess & Check 2
The reverberation of
“fuuuuuckkkk”

19. THE FREAKOUT CYCLE OF
EXECUTIVE EMOTION
— YOUREXPERIMENTALDESIGN
Bad Thing Happens
This is important
Guess & Check 1
Guess & Check 2
The reverberation of
“fuuuuuckkkk”
We’re going to fail

20. THE FREAKOUT CYCLE OF
EXECUTIVE EMOTION
— YOUREXPERIMENTALDESIGN
Bad Thing Happens
This is important
Guess & Check 1
Guess & Check 2
Guess & Check 3
The reverberation of
“fuuuuuckkkk”
We’re going to fail

21. THE FREAKOUT CYCLE OF
EXECUTIVE EMOTION
— YOUREXPERIMENTALDESIGN
Bad Thing Happens
This is important
Guess & Check 1
Guess & Check 2
Guess & Check 3
The reverberation of
“fuuuuuckkkk”
We’re going to fail
We solved it!

22. THE FREAKOUT CYCLE OF
EXECUTIVE EMOTION
— YOUREXPERIMENTALDESIGN
Bad Thing Happens
This is important
Guess & Check 1
Guess & Check 2
Guess & Check 3
The reverberation of
“fuuuuuckkkk”
We’re going to fail
We solved it!

23. THE BREAKOUT CYCLE OF
EXECUTIVE EMOTION
— YOUREXPERIMENTALDESIGN
Bad Thing Happens

24. THE BREAKOUT CYCLE OF
EXECUTIVE EMOTION
— YOUREXPERIMENTALDESIGN
Bad Thing Happens
This is important?

25. THE BREAKOUT CYCLE OF
EXECUTIVE EMOTION
— YOUREXPERIMENTALDESIGN
Bad Thing Happens
This is important?
The reverberation of
“fuuuuuckkkk”
No = Do nothing.

26. THE BREAKOUT CYCLE OF
EXECUTIVE EMOTION
— YOUREXPERIMENTALDESIGN
Bad Thing Happens
This is important?
The reverberation of
“fuuuuuckkkk”
No = Do nothing.
Think.
Framework.
Decide.
Act.

27. THE BREAKOUT CYCLE OF
EXECUTIVE EMOTION
— YOUREXPERIMENTALDESIGN
Bad Thing Happens
This is important?
The reverberation of
“fuuuuuckkkk”
No = Do nothing.
Think.
Framework.
Decide.
Act.

28. THE BREAKOUT CYCLE OF
EXECUTIVE EMOTION
— YOUREXPERIMENTALDESIGN
Bad Thing Happens
This is important?
The reverberation of
“fuuuuuckkkk”
No = Do nothing.
Think.
Framework.
Decide.
Act.

29. THE BREAKOUT CYCLE OF
EXECUTIVE EMOTION
— YOUREXPERIMENTALDESIGN
Bad Thing Happens
This is important?
The reverberation of
“fuuuuuckkkk”
No = Do nothing.
Monitor & Adjust
Think.
Framework.
Decide.
Act.

30. THE BREAKOUT CYCLE OF
EXECUTIVE EMOTION
— YOUREXPERIMENTALDESIGN
Bad Thing Happens
This is important?
The reverberation of
“fuuuuuckkkk”
No = Do nothing.
Monitor & Adjust
Think.
Framework.
Decide.
Act.

31. THE BREAKOUT CYCLE OF
EXECUTIVE EMOTION
— YOUREXPERIMENTALDESIGN
Bad Thing Happens
This is important?
The reverberation of
“fuuuuuckkkk”
No = Do nothing.
Monitor & Adjust
Think.
Framework.
Decide.
Act.

32. THE BREAKOUT CYCLE OF
EXECUTIVE EMOTION
— YOUREXPERIMENTALDESIGN
Bad Thing Happens
This is important?
The reverberation of
“fuuuuuckkkk”
No = Do nothing.
Monitor & Adjust
Think.
Framework.
Decide.
Act.

33. We don’t think and framework as
much as we should.
Brought to you by

34. PROBLEM > CAUSE > SOLUTION
— YOUREXPERIMENTALDESIGN
Problem

35. PROBLEM > CAUSE > SOLUTION
— YOUREXPERIMENTALDESIGN
Cause 1
Problem
Cause 2
Cause 3
Cause 4
Cause 5

36. PROBLEM > CAUSE > SOLUTION
— YOUREXPERIMENTALDESIGN
Cause 1
Problem
Cause 2
Cause 3
Cause 4
Cause 5
Solution 1
Solution 2
Solution 3
Solution 4
Solution 5

37. PROBLEM > CAUSE > SOLUTION
— YOUREXPERIMENTALDESIGN
Cause 1
Problem
Cause 2
Cause 3, 4, 5
Solution 1
Solution 2
Solution 3-5

38. Here’s an example from ProfitWell.
Brought to you by

39. Brought to you by

40. Brought to you by

41. PROFITWELL HISTORY
PW Revenue Under Management - $10B ARR
ARRUNDERMANAGEMENT(INBILLIONS)
$0
$2
$5
$7
$10
$12
2013 2014 2015 2016 2017 2018 2019
PROFITWELL HISTORY
Brought to you by

42. PROFITWELL HISTORY
PW Revenue Under Management - $10B ARR
ARRUNDERMANAGEMENT(INBILLIONS)
$0
$2
$5
$7
$10
$12
2013 2014 2015 2016 2017 2018 2019
PROFITWELL HISTORY
Brought to you by

43. PROFITWELL HISTORY
PW Revenue Under Management - $10B ARR
ARRUNDERMANAGEMENT(INBILLIONS)
$0
$2
$5
$7
$10
$12
2013 2014 2015 2016 2017 2018 2019
PROFITWELL HISTORY
Brought to you by

44. PROFITWELL HISTORY
PW Revenue Under Management - $10B ARR
ARRUNDERMANAGEMENT(INBILLIONS)
$0
$2
$5
$7
$10
$12
2013 2014 2015 2016 2017 2018 2019
PROFITWELL HISTORY
Brought to you by

45. PROFITWELL HISTORY
PW Revenue Under Management - $10B ARR
ARRUNDERMANAGEMENT(INBILLIONS)
$0
$2
$5
$7
$10
$12
2013 2014 2015 2016 2017 2018 2019
PROFITWELL HISTORY
Brought to you by
34+ Companies

46. PROFITWELL HISTORY
PW Revenue Under Management - $10B ARR
ARRUNDERMANAGEMENT(INBILLIONS)
$0
$2
$5
$7
$10
$12
2013 2014 2015 2016 2017 2018 2019
PROFITWELL HISTORY
Brought to you by
34+ Companies

47. PROFITWELL HISTORY
PW Revenue Under Management - $10B ARR
ARRUNDERMANAGEMENT(INBILLIONS)
$0
$2
$5
$7
$10
$12
2013 2014 2015 2016 2017 2018 2019
PROFITWELL HISTORY
Brought to you by
34+ Companies

48. PROFITWELL HISTORY
PW Revenue Under Management - $10B ARR
ARRUNDERMANAGEMENT(INBILLIONS)
$0
$2
$5
$7
$10
$12
2013 2014 2015 2016 2017 2018 2019
PROFITWELL HISTORY
Brought to you by
34+ Companies

49. “The reverberation of fuuuuuuck”
Brought to you by

50. Let’s analyze this…
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51. NPS of -15

52. PROBLEM > CAUSE > SOLUTION
— YOUREXPERIMENTALDESIGN
Problem
Distribution and
monetization of ProfitWell
has become difficult due to
competitive pressures and
limited resources

53. PROBLEM > CAUSE > SOLUTION
— YOUREXPERIMENTALDESIGN
Lack of WTP
Problem
Distribution and
monetization of ProfitWell
has become difficult due to
competitive pressures and
limited resources

54. EATING OUR OWN DOG FOOD
Buyer WTP for a SaaS Metrics Products
Customers weren’t willing to pay as much as we thought for a SaaS Metrics solution. This was especially
bad when looking at the multiple between the lower end customers and the upper end customers.
WTPFORASAASMETRICSSOLUTION
SOURCE: 2017 CONSUMER WILLINGESS TO PAY
$0
$75
$150
$225
$300
$0 - $50k $51k - $100k $101k - $250k $251k - $500k $501k+
Upper
Lower
Median
COMPANY’S MRR
N = ~300 companies

55. data
analytics
insights
outcomes
THE PROFITWELL CONTINUUM

56. data
analytics
insights
outcomes
THE PROFITWELL CONTINUUM

57. data
analytics
insights
outcomes
THE PROFITWELL CONTINUUM
WTP

58. data
analytics
insights
outcomes
THE PROFITWELL CONTINUUM
WTP
NPS

59. PROBLEM > CAUSE > SOLUTION
— YOUREXPERIMENTALDESIGN
Lack of WTP
Problem
Massive accuracy issues
Distribution and
monetization of ProfitWell
has become difficult due to
competitive pressures and
limited resources

60. When utilizing Max Diff, you get both rank order and magnitude, which
allows you to save yourself from costly false positives on preferences.
WHAT TYPE OF FEEDBACK WILL YOU GET WITH MAX DIFF?
-0.4 -0.3 -0.2 -0.1 0 0.1 0.2 0.3 0.4
0-50K MRR
51-100
101-250
251-500
501+
ProfitWell has great uptime,
reliability, and speed
ProfitWell gives me actionable
insights
ProfitWell is free
ProfitWell is the most accurate
solution out there
MORE IMPORTANTLESS IMPORTANT
— RELATIVEPREFERENCEDATA

61. PROBLEM > CAUSE > SOLUTION
— YOUREXPERIMENTALDESIGN
Lack of WTP
Problem
Massive accuracy issues
No name recognition
Distribution and
monetization of ProfitWell
has become difficult due to
competitive pressures and
limited resources

62. PROBLEM > CAUSE > SOLUTION
— YOUREXPERIMENTALDESIGN
Lack of WTP
Problem
Massive accuracy issues
No name recognition
Not a lot of money
Distribution and
monetization of ProfitWell
has become difficult due to
competitive pressures and
limited resources

63. PROBLEM > CAUSE > SOLUTION
— YOUREXPERIMENTALDESIGN
Lack of WTP
Problem
Massive accuracy issues
No name recognition
Not a lot of money
Product is behind
Distribution and
monetization of ProfitWell
has become difficult due to
competitive pressures and
limited resources

64. PROBLEM > CAUSE > SOLUTION
— YOUREXPERIMENTALDESIGN
Lack of WTP
Problem
Massive accuracy issues
No name recognition
Not a lot of money
Product is behind
- Free
- Accuracy is #1
- CommitDistribution and
monetization of ProfitWell
has become difficult due to
competitive pressures and
limited resources

65. data
analytics
insights
outcomes
THE PROFITWELL CONTINUUM

66. data
analytics
insights
outcomes
THE PROFITWELL CONTINUUM

67. Tactical Detour.
Brought to you by

68. profitwell.com/freemium

69. Brought to you by
Truth.

70. Founders who sleep less than 5 hours a night
grow slower than those who sleep 7-8 hours.
Brought to you by

71. Companies with institutional funding have higher
churn rates than those who are bootstrapped.
Brought to you by

73. Founders with hobbies and who score high on
work/life balance have slower growing companies.
Brought to you by

76. Remote companies have considerably worse
growth and worse retention than co-located ones.
Brought to you by

78. Backfire effect.
Brought to you by

79. When something supports our view, we don’t question it.
If something attacks our view, we feel attacked.
Brought to you by

80. So how do you pursue truth?
Brought to you by

81. Most charitable interpretation principle
Brought to you by

82. Assume the other person is competent with
good intentions, and assume they may be right.
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83. THE FREAKOUT CYCLE OF
EXECUTIVE EMOTION
— YOUREXPERIMENTALDESIGN
Bad Thing Happens
This is important
Guess & Check 1
Guess & Check 2
Guess & Check 3
The reverberation of
“fuuuuuckkkk”
We’re going to fail
We solved it!

84. THE FREAKOUT CYCLE OF
EXECUTIVE EMOTION
— YOUREXPERIMENTALDESIGN
Bad Thing Happens
This is important
Guess & Check 1
Guess & Check 2
Guess & Check 3
The reverberation of
“fuuuuuckkkk”
We’re going to fail
We solved it!

85. PROFITWELL HISTORY
Past Three Years - $0 to $10M
PROFITWELLMRR(INTHOUSANDS)
$0
$250
$500
$750
$1,000
2016-04 2016-09 2017-02 2017-07 2017-12 2018-05 2018-10 2019-03
PROFITWELL HISTORY
Brought to you by

86. PROFITWELL HISTORY
Long bit of $0
PROFITWELLMRR(INTHOUSANDS)
$0
$200
$400
$600
$800
$1,000
2012-06 2013-04 2014-02 2014-12 2015-10 2016-08 2017-06 2018-04 2019-02
PROFITWELL HISTORY
Brought to you by

87. PROFITWELL HISTORY
Long bit of $0
PROFITWELLMRR(INTHOUSANDS)
$0
$200
$400
$600
$800
$1,000
2012-06 2013-04 2014-02 2014-12 2015-10 2016-08 2017-06 2018-04 2019-02
PROFITWELL HISTORY
Brought to you by
First time
Founder woes

88. PROFITWELL HISTORY
Long bit of $0
PROFITWELLMRR(INTHOUSANDS)
$0
$200
$400
$600
$800
$1,000
2012-06 2013-04 2014-02 2014-12 2015-10 2016-08 2017-06 2018-04 2019-02
PROFITWELL HISTORY
Brought to you by
Break up
First time
Founder woes

89. PROFITWELL HISTORY
Long bit of $0
PROFITWELLMRR(INTHOUSANDS)
$0
$200
$400
$600
$800
$1,000
2012-06 2013-04 2014-02 2014-12 2015-10 2016-08 2017-06 2018-04 2019-02
PROFITWELL HISTORY
Brought to you by
Break up
First time
Founder woes
The Reddest
of Oceans

90. PROFITWELL HISTORY
Long bit of $0
PROFITWELLMRR(INTHOUSANDS)
$0
$200
$400
$600
$800
$1,000
2012-06 2013-04 2014-02 2014-12 2015-10 2016-08 2017-06 2018-04 2019-02
PROFITWELL HISTORY
Brought to you by
Break up
First time
Founder woes
The Reddest
of Oceans

91. Our most common advice?

92. “You really should meditate.”

93. ”You gotta workout and eat well.”

94. “Do you journal?”

95. Treat the symptoms; mildly preventative.

96. Why?

97. What do you want to achieve?

98. Know thyself.

99. Want
Partners
Team
Family/Friends

100. Want
Partners
Team
Family/Friends

101. Want
Partners
Team
Family/Friends

102. Want
Partners
Team
Family/Friends

103. Introspection > Consume all advice > Be Unapologetic

104. Introspection > Consume all advice > Be Unapologetic

105. Introspection > Consume all advice > Be Unapologetic

106. Brought to you by
Leverage and Truth.

107. You are your champion and your enemy.
Brought to you by

108. Want the slides or data referenced?
patrick@profitwell.com

109. Want more?