Remove multi-year-saas-discounts
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How to Price Discounts in Multi-year SaaS Contracts

The SaaS CFO

SaaS Multi-year Pricing Discounts SaaS pricing can be a pretty complex subject. Mix multi-year contracts, discounts, and churn into your internal pricing discussion, and you need a degree in math to determine the optimal pricing for you and your customer.

Pricing 89
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Dear SaaStr: If You Sell a Multi-Year Deal, Does The Whole Amount Count Toward Quota?

SaaStr

Dear SaaStr: As a salesperson, if you sell a multi-year SaaS deal, does the whole amount count towards your current year quota? Or just the part attributed to your current year? E.g., a multiyear contract where only the first year of cash is pad up front is of limited value. Approaches vary here.

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Dear SaaStr: What’s the Proper Way to Commission Multi-Year Deals?

SaaStr

Q: What’s the proper way to commission a multi-year SaaS sale with increasing ACV each year? Later , you will align around bookings (including multi-year bookings), and change the comps plan to align around bookings. Pay for all the years, I say. It is better, but barely. But barely.

SaaS 273
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Dear SaaStr: Should We Allow Refunds in a Multi-Year SaaS Contract Paid Upfront?

SaaStr

Q: Dear SaaStr: Should We Allow Refunds in a Multi-Year SaaS contract Paid Upfront? They’ll say never allow refunds in a multi-year contract: Sales will hate it, especially if there is an explicit or implicit clawback if they do. Let me add a slightly controversial answer. If pushed. They are right.

SaaS 248
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Annual Contracts: Maybe Not All They Are Cracked Up To Be

SaaStr

I felt like when I was a SaaS CEO and had to go profitable, they helped saved my rear. A multi-year pre-paid contract can be even more magical, and give you months of extra cash in a start-up. Annual deals, done wrong, can create unnecessary (and even more importantly, perpetual) discounting. This is still true.

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5 Predictions about the Future of Customer Success in 2024 with Gainsight CEO Nick Mehta and SaaStr CEO Jason Lemkin

SaaStr

Is it the end of an era for customer success in SaaS? We just wrote up how some of the biggest changes of SaaS are now coming, specifically in Customer Success and Sales. Back in 2015, when didn’t have the data or NRR or GRR of 115 public SaaS companies. Some other key learnings included: The power of the SaaS model.

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How Big a Discount Should I Give For Multi-Year Deals?

SaaStr

Q: What are the typical discounts SaaS companies offer for a multi-year contract paid upfront for a 2, 3 & 5 year contract? you have net negative churn), multi-year contracts are worth less. If so, multi-year are much better. Five is a stretch.). Are your renewals a lot of work?

Churn 175