Product Economics for SaaS & B2B
SaaS economics depend on gross margin, feature velocity, and ARR growth. Technical debt attacks all three simultaneously. The question isn't whether you have debt — it's whether the debt is destroying your valuation.
Debt-to-ARR Drag
Technical debt reduces feature velocity. Reduced velocity slows ARR growth. Slower ARR growth compresses valuation multiples. The economic chain reaction is measurable.
COGS Inflation
AI features, cloud waste, and over-provisioned infrastructure inflate Cost of Goods Sold — the silent killer of SaaS gross margins that investors scrutinize.
Platform Complexity
Multi-tenant architectures, API ecosystems, and integration layers create compounding technical debt that is uniquely difficult to measure and remediate.
Feature Bloat
SaaS companies ship features to close deals. Each feature adds maintenance cost. Zombie features — used by <5% of customers — consume 30%+ of engineering capacity.
How I Help SaaS Companies
- → Calculate the dollar impact of technical debt on ARR growth rate
- → Identify and sunset zombie features consuming engineering capacity
- → Optimize COGS structure for AI features using the AUEB framework
- → Prepare R&D economics for due diligence and board presentations