Counting beans and getting hit by a bus

This week, Jon and Justin are wrestling with some heavy startup founder topics:What should your SaaS company's gross margins be?How much is bandwidth going to cost us? How does it affect our margins?Example: [Account A] does 495,000 downloads in a month, average file size is 8 MB, that’s 3960 GB of bandwidth in a month. If bandwidth is $0.01 per GB, that’s $39.60 just for bandwidth for that one account. And that’s if we can get it that cheap. Otherwise, we’d pay $198 on AWS, or Azure. If we used Google Cloud it’d be $316.The burden of keeping our service up rests on Jon's shoulders. How can we reduce the risk?How can we increase platform resiliency, automation, and improve our internal customer service tools?★ Thanks to our sponsors:Alitu.com: Alitu removes all the tech headaches associated with producing your podcast. They take care of processing, editing & publishing your podcast. Go to Alitu.com and check out their video demo.Podcastinsights.com: If you want to get into podcasting, check out Podcast Insights. They’re a great resource for folks who want to start and grow a podcast. Podcast equipment guides, how to make money. Join millions of readers learning all about how to start, grow, and monetize a podcast at podcastinsights.com.GetRewardful.com: Guess what? Affiliates is providing almost 30% of our revenue. Rewardful makes it easy for SaaS companies to start an affiliate program on Stripe.Show notes:LeadEdge Capital: “Gross margins for SaaS typically range from 60% to more than 80%."Quora on SaaS gross margins.Most users don't realize how much bandwidth costs (Twitter)An explanation of bandwidthIs 1 GB equal to 1024 MB or 1000 MB?Z-cast closes up shopWe're talking to someone at Cloudflare (tweet)Jamie's blog: Implementing ImpersonationYou can reply to this podcast here:Leave a comment on Breaker, the podcast app for Android and iPhone.Leave a comment on CastBox, the podcast app for Android and iPhone.Otherwise, get us on Twitter: @transistorfm or email us: [email protected] your own podcast at transistor.fmThanks to our monthly supporters:Alitu.comPodcastinsights.comGetRewardful.comDarby FreySamori AugustoDave YoungBrad from CanadaKevin MarkhamSammy SchuckertDan EricsonMike WalkerAdam DuVanderDave Giunta (JOOnta) Thanks to our monthly supporters Pascal from sharpen.page Rewardful.com Greg Park Mitchell Davis from RecruitKit.com.au Marcel Fahle, wearebold.af Bill Condo (@mavrck) Ward from MemberSpace.com Evandro Sasse Austin Loveless Michael Sitver Colin Gray Dave Giunta 🎙️ Podcast hosting is provided by Transistor.fm.📺 Learn how to start your own podcast! ★ Support this podcast on Patreon ★

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