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SaaS Unit Economics: What We Look at Before We Build

March 5, 2025

Before we write a line of code, we align on LTV, CAC, and payback. Here's the checklist we use with founders.

We're not just building features—we're building a business. Before we scope a SaaS, we align with founders on unit economics so the product and pricing support growth.

**Core metrics we stress-test** - LTV and CAC, and target payback period - Usage-based vs. seat-based pricing and what your stack can support - Churn and expansion revenue assumptions

**Why it matters for build** - Billing and metering need to match your model (Stripe Billing, usage pipelines, etc.). - Self-serve vs. sales-led changes what we build in the first 6 months.

We've seen projects pivot from "build everything" to "nail one segment and one pricing tier" after this conversation.