SaaS, marketplaces, and business model patterns
Jamie Sullivan and Alex Immerman use data from 60+ public tech companies to explain how each turn of the LTV:CAC ratio flows through to margins, reinvestment capacity, and ultimately valuation. A clear, numbers-backed argument for why every startup needs to understand their unit economics.
Tomasz Tunguz explores SaaS pricing models—seat-based, usage-based, and tiered—and how they affect customer retention, lifetime value, and growth potential. The guide includes case studies from Twilio, Snowflake, and HubSpot. A must-read for monetization strategy.
Bobby Pinero discusses how introducing a freemium tier at Equals led to a spike in sign-ups but damaged engagement and revenue. He walks through the misalignments in onboarding, value delivery, and support strain, offering five concrete lessons for anyone considering freemium models. Cautionary and highly actionable.
This post by A16Z outlines the most important KPIs for two-sided marketplaces. Metrics include match rate, take rate, market depth, and concentration of supply. It offers a rigorous diagnostic toolkit for founders, investors, and operators looking to assess or pitch marketplace startups.
Joost Rietveld unpacks how freemium strategies can be effective if properly executed. He draws parallels between SaaS, gaming, and content platforms, exploring key levers like conversion rates, engagement triggers, and monetization points. A thoughtful read for those designing freemium models or evaluating them.
Jayendra More explains the ad-supported business model, where products or services are free for users but monetized via advertising. He explores the trade-offs in product strategy and revenue predictability, making it a useful read for PMs building or analyzing media and content businesses.
Tavel extends her original framework to highlight how companies can build products that retain users over time. She categorizes engagement loops and stresses the importance of value creation at each step. Highly relevant for product managers and growth teams focused on long-term user engagement.
This article presents the first level of the Hierarchy of Marketplaces framework, focusing on creating user happiness and scalable engagement. Tavel draws on real examples to show how leading marketplaces like Etsy and Airbnb progressed through each level. Useful for marketplace builders aiming for long-term defensibility.
Erik Torenberg explores the dynamics of building and investing in marketplaces. He breaks down core concepts like liquidity, trust & safety, and take rates. The piece includes practical advice for founders on achieving product-market fit in multi-sided networks. Valuable for startup teams and early-stage investors.
Saurabh Nair outlines the fundamentals of marketplace businesses, emphasizing the value of enabling transactions between buyers and sellers. He describes monetization strategies such as commissions, listing fees, and value-added services. A solid primer for operators and analysts entering the platform economy.
This essay breaks down how predictable revenue models—especially SaaS—drive higher valuation multiples. Gurley introduces a revenue quality scorecard, making a strong case for why investors love subscriptions over transactional income. Essential for founders preparing for fundraising or long-term scaling.
Christoph Janz outlines five distinct strategies for building a $100M company, ranging from enterprise (elephants) to consumer (flies). He analyzes pricing models, customer acquisition, and go-to-market approaches to help founders identify their optimal growth path. A foundational read for SaaS entrepreneurs and startup operators.
This influential essay introduces Aggregation Theory, which explains the power of internet companies like Google and Facebook that aggregate demand. It explores how zero distribution costs enable them to scale rapidly while owning the user relationship. A must-read for understanding platform dominance in digital markets.