Now the math gets interesting:
To build a $100m business on a $5 a month freemium tool, you need 2,000,000 paying customers. Congrats to DropBox and SurveyMonkey. But who else is pulling this off? Not too many.
To build a $100m business selling to SMBs at $300 a month, you need ~25,000 paying SMB customers. A lot. But achievable. If you dominate a large vertical, especially.
In fact, it’s easy to see, 5-7 years down the road — 15-20 $100m+ ARR winners here. All selling verticalized solutions to SMBs. It’s, finally, time.
The Rise of the SMB SaaS Solution.