Buffer is famous for transparency. Today, Buffer revealed where your money goes when you sign up for a paid plan.
A couple of interesting points:
- The infographic: Buffer succeeds in making a simple, one-dimensional data series with categorical keys and numeric values into an appealing reading experience
- Expensive salaries: With vanishing costs for running a SaaS business from hardware to software licenses, salaries are the one huge expense for starting a software business.
- Cost of Culture: Apparently having a culture is not free at Buffer. I suspect spending 9.2% of revenue includes social events, food and office toys?
- Credit Card Processing: The only third party called out in Buffer’s cost analysis is Stripe, collecting a whopping 4.1% of Buffer’s revenue.
- Transparent Profit: Buffer is transparent about making 4.6% profit. I suspect that Buffer targets a specific profitability margin. Would they continue to be transparent if their profit margin as negative or “too high”?