Adlega Blog:

What Is a Value Proposition? A value proposition is a clear statement that explains how your product solves customers’ problems, delivers specific benefits, and tells why folks should buy from you instead of your competition. Think of it as your product’s elevator pitch. 👆 By the way, an interesting fact: The concept of value proposition…

What is Signup to Customer Rate? Signup to Customer Rate is a metric that measures the percentage of free signups who convert into paying customers. The basic formula for Signup to Customer Rate: Signup to Customer Rate = (Number of Paid Customers / Total Number of Signups) × 100 👆 By the way, an interesting…

What is an Engagement Loop? An engagement loop is a cycle of actions and rewards designed into a product that encourages users to engage repeatedly. It’s like a continuous feedback cycle where each action leads to a reward, which motivates more actions. 🔄 What makes it work: Triggers that prompt action Clear user actions Rewarding…

What is Sales-Led Growth? Sales-led growth is a business strategy where sales teams drive company growth through direct outreach and relationship building. 👆 By the way, an interesting fact: The traditional sales-led approach dominated B2B software until the mid-2000s, with companies spending up to 50% of revenue on sales teams. How Sales-Led Growth Works Key…

What is Product-Led Growth? Product-led growth (PLG) is a strategy where your product itself drives customer acquisition, conversion, and expansion. Think of it as letting your product be your best salesperson. What makes it special: Product sells itself through great experience Users can start immediately Has a free version to try Easy to share with…

What is Product-Market Fit? Product-Market Fit (PMF) means creating something people want so much they’re telling others about it! Think of it as the perfect match between your product and your customers’ needs 💝 It means: Your product solves a real problem Customers love using it They’re willing to pay for it They recommend it…

What Is Bootstrapping? Bootstrapping means building a company using your own resources, without external funding, like angel investors or venture capitalists etc. Think of it as being your own investor! 💪 What bootstrappers typically use: Personal savings Cash flow from sales Credit cards Friends & family loans Side gig income 👆 By the way, an…

What Is a Venture Capitalist? A venture capitalist (VC) is a professional startup investor. 🚀 They manage pools of money (called funds) from other investors and invest that money into promising startups that could become the next big thing. What makes VCs special: Manage large investment funds Focus on high-growth startups Take active roles in…

What Is an Angel Investor? An angel investor is a wealthy individual who invests their own money in early-stage startups in exchange for equity ownership. They typically provide: Seed funding ($10K – $500K) Business expertise Industry connections Mentorship Strategic guidance 👆 By the way, an interesting fact: The term “angel investor” originated from Broadway, where…

What Is Accounts Receivable (AR)? Accounts Receivable is money customers owe you for products or services they’ve received but haven’t paid for yet. It includes: Unpaid customer invoices Credit sales Payment commitments Outstanding bills 👆 By the way, an interesting fact: The concept of accounts receivable dates back to ancient Mesopotamia, where merchants used clay…

What is Net Revenue Retention (NRR) in SaaS? Net Revenue Retention measures how much recurring revenue you keep from existing customers over time, including expansions, upgrades, downgrades, and cancellations. 👆 By the way, an interesting fact: High NRR companies (120%+) typically trade at 18-22x revenue multiples, while low NRR companies (less than 100%) trade at…

What Is SaaS Gross Margin? Gross margin is what’s left of your revenue after paying the direct costs of delivering your software service. Think of it as your “profit per dollar of revenue” before other expenses. 💰 It includes: Revenue from subscriptions Minus hosting costs Minus customer support costs Minus other direct delivery costs 👆…