Share of Market calculation. TAM, SAM and SOM?

In my experience, and based on the way I coach my clients, creating a pricing model without first creating a business model is an indication of a poor strategy. That said, here are my thoughts based on the information you've provided: 1. You are incorrect about your assumption of "the less the fee, the greater the potential # of clients". What you will very likely discover in practice is that there is a "sweet spot" in pricing such that any price above or below you'll see a drop off in members. In other words - any price LESS THAN or GREATER THAN your "sweet spot" price will result in FEWER members. This is one of those "non-intuitive" components you'll run into as an entrepreneur. 2. If you choose to price based on "competition" you are all but announcing that you are a commodity. Once again I'd suggest that this is a poor strategy. Instead consider your USP (or if you haven't yet done so...create one). Once you are properly differentiated YOU control and set pricing based on the VALUE you provide to the marketplace that they can't get anywhere else (i.e. Ferrari and Harley Davidson and Starbucks, etc). 3. Even with a solid strategy, a strong USP, a great product and a well-thought-out business model - you will likely still need to do some market testing (i.e. A/B testing) to find that "sweet spot" price I mentioned earlier. (I have yet to personally see anyone hit the mark right out of the gate.) 4. The last piece of info you provided - regarding monthly vs discounted annual membership pricing - would be a part of your OFFER. This is NOT the same as a pricing strategy - which should ideally be developed FIRST (at least conceptually). This is not to say you couldn't launch with the offer, but I'd suggest you figure out pricing FIRST and then develop offers based upon your deep understanding of your market. For assistance with any / all of the components I mentioned - give me a call. And be prepared that (in my opinion) whomever you decide to enlist this is going to take several calls to work out unless you have much of the groundwork already figured out. I apologize for this assumption - but I'm basing it on the information you provided and with hopes that this response will be helpful to others. I wish you great success!

If you're looking to build a service like Xero that imports users bank transactions and balances, you've got a few options. Xero uses Yodlee on the back end to power their bank feeds. As I understand it, it's rather old school and often errors out, but supports a huge range of banks through scrapers, private APIs, and all kinds of proprietary technology. You can also check out Plaid - you can think of them as the modern version of Yodlee. They support a more limited number of banks, but have an excellent API and SDK, and I believe are much more affordably priced than Yodlee.

Hello, I am not too sure on the US postal services. But 1 option could be to find a fulfilment partner in the regions you are looking to target and ship a box of your best selling lines (via recognised carrier) and then when the sales come in fulfill locally. For example in the UK, the package you have, would cost as low as 0.65p ($1.20) to ship standard post, if you wanted it tracked then you would need to add an extra £1.20 ($2.50) Thanks Sam

Most people are lazy. They won't do anything other than daydream about becoming your competition. Next point: if the barrier to entry to your marketplace is low, then it's all about selling. Rather than focusing on features or what you do ("We make websites"; who cares?), start talking about serious problems your solution fixes for your customers. Things like: > reduced waste/rework > minimized project times > lowered interpersonal struggles > shrunk sales cycle > sped-up time to profitability on new products. When you concentrate on these ideas, you differentiate yourself and move out of being a commodity provider.

Here is a link to a basic model - http://monetizepros.com/tools/template-library/subscription-revenue-model-spreadsheet/ Depending on the purpose of the model you could get much much more elaborate or simpler. This base model will help you to understand size of the prize. But if you want to develop an end to end profitability model (Revenue, Gross Margin, Selling & General Administrative Costs, Taxes) I would suggest working with financial analyst. You biggest drivers (inputs) on a SaaS model will be CAC (Customer Acquisition Cost, Average Selling Price / Monthly Plan Cost, Customer Churn(How many people cancel their plans month to month), & Cost to serve If you can nail down them with solid backup data on your assumption that will make thing a lot simpler. Let me know if you need any help. I spent 7 years at a Fortune 100 company as a Sr. Financial Analyst.