Sales Hacker

FEBRUARY 7, 2025

SaaS pricing isn’t static – it’s a living strategy that grows with your company. In this article we dive into a playbook for pricing across different stages of company growth, inspired by Geoffrey Moore’s Crossing the Chasm. Tiered pricing models emerge to address these differences.

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Pricing Scale SaaS Technical Review 104

SaaStr

SEPTEMBER 8, 2022

from 2020 , on top of another 10% or so costs in building them outdoors. Sitll, on a blended basis, average costs are up about 15% from 2020. Our ticket prices are actually down about 8%, and sponsor costs flat from 2020. We also won’t raise ticket prices for Annual most likely. Now it’s not all bad. The post Ouch!

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Pricing 246

Tom Tunguz

MARCH 25, 2025

You have to pay a price for your distinctiveness, and its worth it. – Jeff Bezos wrote this in his final CEO letter, a parting gift in 2020 , and it’s a thought that I carry with me since then. It’s worth every penny of the price. That version is misleading. Youll have to put energy into it continuously.

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Tom Tunguz

NOVEMBER 19, 2020

The late stage venture market is on pace to set a record in 2020. Through Q3 2020, late stage investors have invested as much as the entirety of 2019, and should things continue linearly we should expect the final tally to exceed $100B. When demand exceeds supply, prices increase. And it would be 4x the size of 2010.

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Venture Capital Government Pricing Investment 353

SaaStr

FEBRUARY 21, 2020

Far more attendees — but same sponsor pricing through March. Even though we’ll be a lot bigger, we’re holding the same sponsor pricing through early March. The post A Preview of SaaStr Europa 2020: 3,000+ in Paris 17-18 June appeared first on SaaStr. If you want to sponsor, do it now. So sponsor now ??.

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Banking Pricing Branding Scaling 44

Tom Tunguz

DECEMBER 26, 2018

Just where are we pricing SaaS companies today? Then prices began a long descent into the February nadir at 3.3x These are exceptional businesses growing at exceptional rates trading at exceptional prices. Reading the news in the past week made me wonder. The Nasdaq and the S&P have toyed with a bear market.

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Pricing SaaS Startup Investment 217

Intercom, Inc.

NOVEMBER 18, 2019

We use our own Custom Bot on all the key pages of our site, including our pricing page, demo page, and homepage. For example if you visit our pricing page, our bot will trigger after a few seconds, asking how we can help. The post Where chatbots are headed in 2020 appeared first on Inside Intercom.

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Scale B2C Technical Review Airlines 42

Tom Tunguz

MARCH 10, 2022

In fact, their revenue trajectories through 2020 are nearly identical. Both companies employ a usage-based pricing model: pay for what you use. They would both exceed $400m in 2020. Both have grown very fast. In 2016, each company recorded less than $50m in revenue. In two years, both would near $200m in revenue.

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Startup Pricing Revenue Development 338

SaaStr

JULY 8, 2019

The pros are that the revenue is highly predictable, and most SaaS applications are still priced this way. The cons are that it the one-size-fits-all approach to subscription pricing is a bit … dated … in SaaS. Does my price automatically go up, even if I just add 1 or 2 users to my account? But be more flexible in 2019/2020.

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Pricing SaaS Subscription Payment Features 190

Tom Tunguz

MAY 23, 2021

While not as hyperbolic an inflation rate as copper or lumber, the price trajectory of early stage cloud startups does result from a similar supply demand/imbalance. 3 of the years saw declining prices. Perhaps these prices are tied to blockbuster IPO markets. 2021: Snowflake (late 2020), UIPath, Airbnb, Doordash, Coinbase.

Software Review 364

Software Review Venture Capital Cloud Pricing 364

Tom Tunguz

MARCH 23, 2023

Seeds peaked at 1500 in Q1 of 2020 falling to 155 in Q1 of 2023. First, the market hasn’t yet determined the clearing prices for Series B companies. The new pricing norms, the multiples of ARR which declined from 100x ARR , aren’t broadly accepted. Why is the Series B so rare?

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Venture Capital Pricing Startup Marketing 340

SaaStr

APRIL 8, 2020

Pressure tactics, exploding discounts, 48-hour trials that end on you, us-vs-them pricing, are all still alive and well. And in the end in 2020, they can create a buying process that for us at least, is just way too hard and long. Make pricing < $50,000 at least as simple and transparent as possible. And price it that way.

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Construction Pricing Software SaaS 363

SaaStr

FEBRUARY 26, 2022

No, this SaaS Crash is so tough on VCs and public market investors because the market was just so, so high for Cloud stocks from mid-2020 to late 2021: You can see above in the BVP Nasdaq Cloud Index that while these are still Great Times in SaaS, they aren’t the crazy days that peaked around Thanksgiving 2021. I really do.

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Venture Capital Cloud Startup SaaS 364

SaaStr

SEPTEMBER 19, 2023

This already had started to break pre-2020, as the war for talent drove up costs in these “secondary” sales centers. And then of course, post-2020, the world changed for sales reps. Second, sales comp expectations ballooned in the Boom Times of mid-2020 to early 2022, and haven’t really come down.

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SMB Scale Sales Hiring Sales 310

SaaStr

OCTOBER 14, 2021

We’re getting used to seeing these super-high NRR numbers from the top developer-focused leaders, in many cases because utility pricing often encourages it (see also Datadog, Twilio, etc). And 100 by 2020 and 200 by 2021. GitLab’s SaaS revenues are still just 20% of their revenues, although that’s up from 9% in 2020.

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Outsourced Development Software Development Innovation Cloud 66

SaaStr

AUGUST 28, 2020

We’re off to the races for registration for 2020 SaaStr Annual at Home on Sep 2-3. 1000s of folks haven’t chosen their sessions yet. And also note a handful of super-popular sessions like the COO of Github and SVP Product at Zendesk have just kicked off reg, so those likely will soon be in the Top 10, just give it a day or two.

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Cloud Startup Pricing Strategy 297

FastSpring

JUNE 25, 2020

Fixed a bug that caused price decoration to be applied to non-US USD subscriptions when updated via the API. The post FastSpring Release Notes: June 25, 2020 appeared first on FastSpring. Fixed a bug that prevented custom orders from being edited after using the search feature.

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Payment Features Payment Solutions Subscription Pricing 147

SaaStr

JANUARY 11, 2023

And while it’s stock price is down from its 2021 peaks, it’s still up 2x since its 2020 IPO. Docebo’s pricing is on the “corporate” side of LMS. It doesn’t compete at the bottom of the market, and targets top logos with a reasonably priced product. That’s right.

Scale 350

Scale Pricing Scaling Enterprise 350

SaaStr

DECEMBER 19, 2019

Especially as they gear up to cross $1 billion in ARR in 2020. Many see this price point as not scaleable. But in the end, it is providing more products and more value at the same price point. This counters the narrative of always raising prices on customers as you sell them more stuff. With a $10k ACV.

Outsourcing Services 363

Outsourcing Services Scale SMB Pricing 363

SaaStr

NOVEMBER 6, 2023

On top of that, inflation and price increases are eating into overall IT budgets. will grow the fastest at 20.4%, and price increases and increased utilization at existing vendors will consume a significant amount of that growth. As compared to late 2020 and 2021, when change was the name of the game. With some big caveats.

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Merchant Services Azure Software AWS 304

SaaStr

MARCH 19, 2021

PayPal has continued to skyrocket, and then, of course, Zoom replacing ServiceNow in the top five from 2020, as Zoom meetings, Zoom backgrounds, and for all of us, even a little Zoom fatigue is becoming a necessary and important element of our every day. Usage-based pricing. Zoom’s market cap grew over 4X to reflect that.

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Cloud Scale Payment Methods Payment Solutions 270

SaaStr

OCTOBER 23, 2020

— Jason BeKind Lemkin (@jasonlk) October 23, 2020. If a founder really wants to sell at almost any price, it’s a flag. Ex-employees can sell everything, if there’s a market and the company allows it, at any price. The answer to me is simple: Are you OK if it turns out you never get another chance to sell? Otherwise, sell.

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Pricing Marketing Leadership 356

SaaStr

NOVEMBER 17, 2023

The startup I invested in that were acquired by PE in the 2020-2021 Boom were acquired for 8x in one case, 12x in another, and 15x in a third. The prices would be lower today for the latter two I suspect. Todd Gardner took a look at a series of public “take private” deals from 8/21 to 8/23, spanning the Boom and the Reset.

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AWS SaaS Pricing Acquisition 315

SaaStr

NOVEMBER 9, 2020

— Jason BeKind Lemkin (@jasonlk) November 9, 2020. Instead of a crummy office at 2x the price. We’ve been stalking office spaces looking for a deal in case a vaccine came before end of 2020. — Stephen (@salred3) November 9, 2020. trade shows are already full in China. So while Covid rages across the U.S.

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Underperforming Technical Team Sales Hiring Travel Cloud 330

FastSpring

NOVEMBER 8, 2021

98% of SaaS companies experienced positive growth when they made core changes to their pricing models in 2020. As the B2B world continues to integrate SaaS, pricing models are adapting as well. Pricing Model #1: Segment-based. Then, you can dynamically display each variation in pricing tiers on your quotes and websites.

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SaaS Payments Pricing Merchant Services Payment Solutions 139

SaaStr

MARCH 10, 2021

(note: precise ARR unclear, but at $400m in GAAP revenue in 2020, growing 38% year-over-year, they should be about there now). Pricing is based on products and volume, not seats. Procore has done very well aligning pricing naturally with usage. 5 Interesting Learnings: #1. 43k ACV across 10,000+ Customers. Many ignore it. #3.

Construction 283

Construction Scale Pricing Mobile 283

Andreessen Horowitz

DECEMBER 21, 2020

Asset prices gained much of the mainstream attention, with Bitcoin hitting its all-time high this month. Meanwhile DeFi, or decentralized finance, applications on Ethereum have attracted users eager to trade, loan, or borrow … The post Five Charts That Tell the Story of 2020 in Crypto appeared first on Andreessen Horowitz.

Finance 137

Finance Pricing Blockchain 137

SaaStr

JUNE 21, 2022

Incredible boosts, and their stock prices went on a tear. In fact, all 3 were clear in their public announcements that the Covid boost was already over by the end of 2020: Is the Covid Boost in Cloud and SaaS Already Over? We’d never seen revenue acceleration like this ever in B2B software. It couldn’t last.

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SaaS Cloud B2B Enterprise 330

SaaStr

JUNE 19, 2024

Toby joined Bitly in 2020 as CEO, and they started to lean in and push hard into the PLG motion. Expand pricing and packaging. Pricing and Packaging Can Fuel or Kill Monetization Bitly’s online channel was relatively young, launching in 2019. With experimentation comes pricing and entitlement tests.

Scale 297

Scale Scaling Underperforming Technical Team User Experience 297

SaaStr

JULY 10, 2022

Especially now in 2022, when venture capital again is scarcer, and more expensive, and far harder to close than it was during the go-go times for SaaS of 2021 and late 2020. What’s between $100m and $1b in acquisition prices? Let’s take a look at 3 B2B acquisitions from a few years back as an example. the amount raised.

Venture Capital 363

Venture Capital Acquisition Pricing Cloud 363

Tom Tunguz

APRIL 30, 2024

Cloud Capex in Q1 AWS $14 billion Azure $14 billion Google Cloud $12 billion These are not one-time investments, but part of a broader trend that started to occur after the introduction of GPT 3 in mid-2020 Amazon was the first to invest significantly. Each of these businesses are large enough to justify it.

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Cloud AWS Azure AI 311

SaaStr

NOVEMBER 10, 2020

And as we’ll see below, those prices might actually be pretty high, because acquisitions often come at a premium. — Alex Lim (@alexlimbo_) November 10, 2020. Slow growth like Workfront, even at $200m ARR, is “only” worth 7x ARR. A strategic acquisition like Llamasoft is worth 15x.

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SaaS Cloud Acquisition Revenue 343

SaaStr

MAY 8, 2021

And customer count varies a lot based on pricing / ACV: Dropbox may have the most customers of any SaaS company — 15m+ at $2B in ARR. Wix is at $1B ARR, worth $15B and added 1 million new subscriptions in 2020. More here. More here.

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SMB SaaS Subscription Payment Features 278

SaaStr

FEBRUARY 25, 2023

While technically true, especially if you’ve raised a lot (as many did in the Boom Times of late 2020 to early 2022), I believe embedded in this thinking is some bad advice. First, if the exit price is at least 2x-3x the total amount raised, it can be worked out. By cheap, I don’t just mean price. The VCs will not be happy.

Venture Capital 315

Venture Capital Pricing Investment Revenue 315

Neil Patel

SEPTEMBER 22, 2020

But be prepared, their 100% CRO dedication comes with a price. And with these premium prices, you can expect premium results for your business. After looking at this detailed list of the best CRO companies of 2020, you’re probably wondering how to choose the best one of them all. Price Range.

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Sales Hiring Outsourcing Services Social Media Underperforming Technical Team 144

SaaStr

MAY 21, 2022

ZoomInfo was the first post-Covid IPO in June 2020, and it priced at $8.3 A few case studies: * Sprout Social IPO’d in December 2019 at an $800m market-cap. It’s tripled. Its PLG-assisted sales motion has kept it capital efficient, and today it’s worth $2.7 It’s doubled. Zscaler’s market cap before Covid was about $6B.

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AWS SaaS Cloud Scale 285

SaaStr

JULY 17, 2020

— Aaron Levie (@levie) April 1, 2020. The ones that are Covid Beneficiaries, that are growing faster than before Covid-19, are raising huge rounds at much higher prices. Work from Home has been accelerated by a decade. Digital transformation by 5 years. People are definitely starting to work in new ways.

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Airlines SaaS Travel Cloud 342