Christoph Janz of Point Nine Capital has a fantastic post about the five ways to build a $100 million company.  If you’re in SaaS, you should read this.  His point on the prosumer market was particularly good I thought.  We started off in this world thinking it would be a big market but Christoph’s post puts into perspective how hard it is to get big in this market and was and is part of the reason we continue to go upmarket.

He writes:

Most SaaS companies that target small businesses charge something around $50-100 per month, so their ARPA per year is around $1k. To acquire 100,000 of these businesses you need something in the order of 0.5-2 million trial signups, depending on your conversion rate.

That is a lot of leads.