Is this discouraging to anyone looking to start a SaaS-based startup?
You imagine that your new service will make money, but in reality sales and marketing will cause you to have to chase funding constantly just to stay alive.
Thoughts?
http://blog.startupcompass.co/2014-saas-market-outlook
Basically my assessment is that we are blowing out brains out doing enterprise sales for low ACV sales. It is hardly the promise of subscription software as a money machine.
The problem is that there is not very well organized distribution channels so we all have to spend huge sums on acquisition.
Compare Zendesk's total account book size (40,000) to Intuit Quickbooks (5 million they have claimed).
That's what I would like to help fix with the SBWeb, our trade association. Tough problem though. Lots of things have to change first.