The Annual Per-Seat SaaS Contract: Not Quite The Gold Standard It Used To Be
SaaStr
MARCH 11, 2021
SaaS then remixed this model by charging less in Year 1 for a “subscription”, but often more over time, especially by Year 3. Fast forward to 2021, and many SaaS and similar products don’t really charge upfront fees: 50% of Zoom customers pay monthly. You no longer bought. You rented :). Salesforce perfected this is the enterprise.
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