SaaStr

OCTOBER 26, 2022

That’s Freemium at scale. We had a classic SaaStr post sharing how it can take 50 million free users to make freemium really work, and Wix’s math ties to it. Business Solutions” including payments has gross margins of only 21%. Despite being freemium, Wix’s business model isn’t hyper efficient.

Payments 212

Payments Payment Solutions Payment Methods SaaS Payments 212

SaaStr

SEPTEMBER 5, 2022

Recent unicorns like Stripe and Canva have stolen the headlines, but a wide range of successful PLG businesses all over the globe have arisen. Companies may try a freemium option or a user-based model to start. This can mean saying no to short-term revenue to build a true PLG business.”. Secret #1: Born, not made.

Sales Recruiting 240

Sales Recruiting Business Pricing Churn 240

SaaStr

MARCH 8, 2024

The Costs Are Dynamic : There’s an actual, tangible cost — dollars per token, cost of hosting, fine-tuning models, etc. If you’re a full stack or model company, there’s the cost of training, pre-training, re-training, the cost of the data itself, and curating that data. What is the right model for your company? ROI is unproven.

AI 188

AI Artificial Intelligence Pricing SaaS 188

SaaStr

JUNE 12, 2020

It’s not just because it’s freemium. Box had a freemium component too, albeit a pretty small one now. We got to cash-flow positive bu $4m-$5m in ARR growing > 100% YoY with a sales-driven model. If you don’t do freemium right, it doesn’t really decrease your CAC. The same with Qualtrics vs Medallia.

Scale 330

Scale SaaS Business Model Strategy 330

User Pilot

APRIL 10, 2023

Apart from offering delightful products, these companies have managed to successfully leverage their freemium strategy to drive product growth. Could freemium work for your SaaS business? And if you decide to go the freemium route, we look at some best practices and check out examples of their successful implementation.

Strategy 89

Strategy SaaS Onboarding Marketplace as a Service 89

SaaStr

FEBRUARY 9, 2024

From a Go-To-Market perspective, Zapier uses a hybrid model that involves a combination of freemium offerings, subscription plans, and partnerships. Let’s dive into what’s making that hybrid model successful: PLG and Sales Led? They were still trying to prove that model, which wasn’t ready to scale.

Scale 251

Scale Sales Hiring Sales Marketing 251

User Pilot

MARCH 14, 2023

How do you boost your freemium conversion rate and accelerate your SaaS growth? However, before we dive into different techniques you can use to drive conversions and analyze some successful examples, we look at the upsides and downsides of using the freemium model along with some useful benchmarks. What is the freemium model?

SaaS 98

SaaS Onboarding Benchmarks B2B 98

Sales Hacker

SEPTEMBER 22, 2023

Another busy week in ‘the city that never sleeps’. Hubspot recently released a blog on how to effectively optimize the freemium conversion rate; see link/visual below: 5 key steps in the process: 1. To improve freemium conversion rates, it’s essential to set appropriate product limitations for free accounts.

Enterprise 87

Enterprise Scale Generative AI SMB 87

Blulogix

NOVEMBER 8, 2023

6 Subscription-Based Pricing Models and When to Use Them By BluLogix Team In the ever-evolving landscape of business, one pricing model has emerged as a consistent favorite: the subscription-based pricing model. Take your business further with BluIQ’s flexible, scalable, enterprise-grade intelligent billing solutions.

Subscription 52

Subscription Payment Features Pricing Technology 52

SaaStr

JUNE 20, 2021

Founded in 2012, Klaviyo initially operated as a database with an API that allowed businesses to run queries against their customers. When it came to pricing, Klaviyo decided to pursue a value-based model instead of a cost-based model. These days, Klaviyo is known as an eCommerce, email marketing and customer messaging solution.

Scale 296

Scale Marketing Pricing Consulting 296

SaaStr

JUNE 1, 2021

My learning and rough rule trials and freemium options work well — if you can support them well. Not necessarily a freemium version, though. Freemium is a business model. Engineering costs to maintain the trials and trial experience. If they can, would it work well self-deployed?

Scale 306

Scale Engineering Enterprise Business Model 306

SaaStr

OCTOBER 24, 2022

Doing Business with Developers. According to Gartner, 98% of companies plan to use APIs in their business, either internally or publicly. In PLG, you have something like a freemium motion to acquire customers. The magic of developer products and the pricing model is the expansion. So why sell to these developers?

Underperforming Technical Team 173

Underperforming Technical Team Outsourced Development Development Part-Time VPE 173

SaaStr

DECEMBER 27, 2020

Those of us who’ve been around a while think of New Relic as a freemium and almost SMB tool, but today 77% of their revenue comes from accounts greater than $100k. New Relic started off as a very freemium app, but put more gates in place as ARR grew and deal sizes went up. Especially if your model says they’ll pay more.

Scale 291

Scale Outsourced Development SMB Cloud 291

SaaStr

DECEMBER 11, 2021

Aaron Levie, CEO and Co-founder of Box, discusses the approaches he used for scaling his company in terms of hybrid work, adjusting to a dynamic economy during the pandemic, and the importance of the Cloud and digital technology for every business. But sticking to your ideal company model is the right move for the future of your company.

Scale 232

Scale Cloud Scaling Interviewing 232

SaaStr

MARCH 10, 2023

It makes sense that a sales-growth model was the number one growth driver during this time. The good news is you can adapt to a product-led sales hybrid model, blending the two for a strategy that aligns with your organization. 50% of Amplitude customers started as freemium members and then moved to paying. That’s creepy.

Sales 195

Sales Travel Forecasting Startup 195

User Pilot

JUNE 13, 2022

Are you looking for the best SaaS blogs and influencers to follow in 2022? We curated a list of the best SaaS blogs and influencers to help you learn more about SaaS and increase your revenue. We covered the best blogs on SaaS growth, product marketing , UX analytics, venture capital, and sales. What is a SaaS blog?

Venture Capital 52

Venture Capital SaaS Data Scale 52

Subscription Flow

DECEMBER 1, 2023

Recurring revenue models, or subscription models , can be a great way for businesses to generate income while providing customers with the options they want. This trend is even affecting business-to-business enterprises. In this sense, their revenue is consistent, long-term, and somewhat predictable.

Subscription 59

Subscription Payment Features Metrics Business 59

SaaStr

SEPTEMBER 11, 2020

Mailchimp took years to transition from an agency to a software business, and then years until it finally took off when they added freemium. Mailchimp didn’t really have product-market fit until it went Freemium a full 2 years in. Even today, a GDPR type business model threat (or global pandemic) happens regularly.

Branding 351

Branding Software Scale Business Model 351

SaaStr

FEBRUARY 14, 2021

Recently I’ve been fortunate enough to meet with a number of outstanding entrepreneurs building self-service SaaS business at the bottom of the market. A customer base made up of Very Small Businesses and individual business purchasers in slightly larger companies. And competition thus ends up being even fiercer.

Revenue 256

Revenue Sales Hiring Customer Lifetime Value Churn 256

User Pilot

MAY 23, 2023

Unlike a sales-led model, a product-led organization doesn’t need users to reach out to a sales rep to book a demo. Unlike a marketing-led model where the more eyeballs you get, the better. However, how does this model fit your company? However, that doesn’t mean every SaaS can fit this model.

Scale 94

Scale SaaS Retention Onboarding 94

SaaStr

APRIL 16, 2023

In the case of Zenefits, it’s a product that every small business needs and we’re selling it for free. Jason : A lot of things I want to chat about with limited time, but I want to talk about business models, because we’re here about scaling revenue. Slack for Business? That combination is explosive.

Scale 336

Scale Sales Hiring PayPal Development Team Review 336

Blulogix

JANUARY 7, 2024

Choosing the Right Billing Platform for Your Subscription Model By BluLogix Team Selecting the right billing platform is a critical decision for businesses operating under a subscription model. Take your business further with BluIQ’s flexible, scalable, enterprise-grade intelligent billing solutions.

Payments 52

Payments Payment Features Payment Services Subscription 52

Incredo

JANUARY 14, 2020

You searched it on Google, found an article on a video software provider’s blog, and clicked on the headline. At the end of the post, you saw a freebie on a similar topic. To attract more awareness stage visitors, you need to create blog posts, videos, lead magnets (checklist, cheatsheet).

Sales Funnel 239

Sales Funnel SaaS Sales Social Media 239

User Pilot

FEBRUARY 9, 2023

In our comprehensive guide, we discuss what PLG is and how it’s different from other models. TL;DR Product-led growth is a business strategy that relies on the product as the main driver of growth. Both sales-led and marketing-led growth models focus on customer acquisition, but less so on their retention. Book the demo!

Strategy 98

Strategy Scale Customer Lifetime Value Onboarding 98

SaaStr

MAY 12, 2022

Offering its services as a freemium-based model, CircleCI recognizes driving trials as the cornerstone of a go-to-market strategy for any developer tool. . Jim Rose, CEO of CircleCI, leverages his experience marketing to software developers to discuss the merits of moving from a subscription-based to a usage-based business model.

Scale 229

Scale Payments SaaS Payments Payment Services 229

SaaStr

AUGUST 25, 2023

4 Let’s add a freemium or cheaper edition. PLG aren’t magic letters that fix a broken business model. Freemium isn’t a marketing strategy. The right way to do freemium , PLG, or low-end initiatives is… To say, “ Things are going pretty well, but we’re losing this segment of the market. You can always afford it. #4

Part-Time VPE 174

Part-Time VPE Scale Sales Hiring CTO Hire 174

User Pilot

DECEMBER 3, 2022

The experience lifecycle describes how a customer feels as they move through the different stages of their journey with a business. The reach stage of the customer journey describes the moment when customers first hear about your business. In SaaS, this is usually the moment they start a free trial or freemium plan. Conversion.

SaaS Payments 98

SaaS Payments Payment Solutions Software Review Payment Services 98

User Pilot

JANUARY 27, 2023

Whichever model you choose for your product, there are things you can do to help your users convert. In contrast, freemium requires no payments whatsoever but offers limited functionality. Freemium plans offer conversion rates of around 5%, while free trials of about 17%. What is the role of a free trial in the PLG model?

SaaS Payments 97

SaaS Payments B2B SaaS Payment Solutions 97

Totango

DECEMBER 6, 2021

What 2021 Taught SaaS Businesses about Customer Success. As the business world adapted to the challenges of 2021, SaaS companies re-examined what customer success means in today’s digital-first environment. First, we’ll look at how the flywheel model has redefined our understanding of the customer journey.

Scale 92

Scale Strategy Technical Review Customer Success 92

Totango

SEPTEMBER 17, 2021

The freemium SaaS model , where you offer limited free use of your product to promote a premium version, has become common in the tech industry. We’ll take a closer look at what the freemium SaaS model is and what its pros and cons are. Use this information to help you decide whether a freemium model is right for you.

Scale 74

Scale SaaS Underperforming Technical Team Social Media 74

User Pilot

JANUARY 26, 2024

For those who would like to implement the growth model, here's our product-led growth playbook. For SaaS businesses, PLG offers benefits like lower user acquisition costs , reduced burden on customer success and support teams, sustainable and scalable business growth, and higher customer satisfaction, retention, and lifetime value.

SaaS 93

SaaS Acquisition Onboarding Retention 93

User Pilot

JUNE 19, 2023

Common conversion examples include visitor to trial, trial to paid, and freemium to paying customers. more conversion than freemium. The average freemium conversion rate ranges from 1% – 10%. Trial type (free, paid, freemium ). Engagement model (high touch vs low touch). more conversion than freemium.

Benchmarks 98

Benchmarks B2B SaaS Payments Payment Methods 98

User Pilot

JUNE 12, 2023

You can boost your trial signup conversion path by showcasing social proof of your product’s value, using a clear pricing model , and keeping the signup process friction-free. Ultimately, your chosen price model and price points will help users decide whether or not they’re ready to convert. The Userpilot pricing page.

Onboarding 95

Onboarding Pricing Churn Banking 95

Subscription Flow

NOVEMBER 14, 2023

Let us dig straight into the important question that this blog is concerns with: how is the cost of your subscription determined? Though they all these ways do not fully utilize the money generation options of a business, these strategies can still be fairly effective. What is a membership business pricing model?

Pricing 52

Pricing Payments Payment Services Payment Methods 52

SaaStr

DECEMBER 22, 2021

This is not an easy business model to maintain and grow, even if it seems like a “rocket ship” from the outside. You can have a pure PLG model where the product does sell itself—the buyer can dive into the product, experience it with someone they know, and unknowingly make a customer out of that person. Key takeaways.

Engineering 223

Engineering Marketing Sales Systems Review 223

Blulogix

FEBRUARY 11, 2024

It’s about laying down a strategic foundation that not only supports but also elevates every aspect of your business objectives in the digital economy. This blog post serves as your step-by-step guide to developing a Monetization Framework that aligns seamlessly with your business goals, ensuring agility, efficiency, and growth.

Payment Features 52

Payment Features Underperforming Technical Team Construction Customer Lifetime Value 52

User Pilot

JUNE 10, 2019

Product led growth marketing is like the business equivalent of really great storytelling. Typically, this means you’re marketing products with a freemium model or that offer a free trial. That’s why product led growth marketing isn’t only about marketing and selling, it’s also aligned with business goals and strategy.

Growth Marketing 140

Growth Marketing Marketing Scale Payment Features 140