E37: SAAS Economics with Michael Alt
In this episode of the SAAS Operators Podcast, we sat down with Michael Alt to talk about the economics of building and running software. We talk about usage based pricing for ecommerce SAAS, why it feels great in November and awful in February, and how order volume, support load, and infra change your cost to serve each customer. Michael explains what happens when your COGS is mostly cloud and AI, why balance sheet funded startups can ignore gross margin for years, and why bootstrapped teams do not have that luxury.
We talk about the quiet tax of bad decisions, how indexes, data models, and…
The skinny
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