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Ask HN: ARPU and ARPPU estimation for Volume-Transaction based SaaS
3 points by RenatZubairov on Oct 5, 2010 | hide | past | web | favorite | 2 comments
How would you estimate ARPU and/or ARPPU for Volume-Transaction based SaaS application.

I did a simple calculations based on the great http://www.forentrepreneurs.com/saas-metrics/ however I'm missing a feeling about ARPU. ARPU is relatively simple for fixed-mounthly fees, but when users pay on demand, that's hard to estimate.

Any ideas on how to do it? Any estimates on ARPU of other volme-based services, e.g. Google App Engine or Amazon S3.

Interesting topic is ARPU distribution over user base, assuming all users are paying.... 80/20 rule there too?


I'm happy to provide numbers for Tarsnap.

Average revenue per user is slightly more than $3/month. About 50% of users are less than $0.15/month, about 70% of users are less than $1/month, about 85% are less than $3/month. The top 15% are responsible for about 85% of the total revenue.

What else do you want to know?

Hi Cperciva, Thxn for the info!

Your website looks very nice! So you are saying pattern is more 85/15 than 80/20... interesting... How about segmentation? What about the acquisition costs for these most valuable 15%, was it higher than for other 85%? How about churn? I bet churn rate for backup service should be lower than for most of other SaaS applications....


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