David Skok

So that's, again, quite an easy one to recognize if you're doing payroll or if you're doing any kind of benefits or anything like that.

The number of employees in an organization is going to definitely equate to the amount of value that you're getting from the system.

And then to really get things going, what namely did was to identify that they could add other capabilities like benefits administration was was a big one that they added onto the product.

Actually, they started with HRIS and added payroll.

So the goal is to get people onto all three of those major modules and then be able to charge them on a per employee per month basis, which is pretty well recognized in the HR space as being a good one there.

Yes, they are also working on the same size of company.

Yeah, great, great point.

So I think when you're at 5 million in ARR, you probably want to have two pricing axes, possibly three, but not more than that.

And you want your pricing to be simple because the customer, it should be easy for them to buy and easy for them to understand what it is that they're paying for.

So I would say two and keep it simple to start off with.

Yes.

So that can definitely happen.

But to me, it's a bad sign.

Any logo churn number that's greater than 20 percent per annum is worrying.

And it's evidence that you don't have good product market fit in one of your customer segments.

So what I would do there is I would recommend every startup look at the segments in their customer base and split them and start doing the metrics by different segments.

So, for example, you might have large customers, medium customers and small customers as your segments, or you might have

some industry specific thing about them.

Like you might have high tech as one segment and healthcare is maybe a different segment.

If you've got high churn, what you want to be trying to do is understand why is there a difference between the people who are sticking with me and expanding and the group that are signing out.