Remove AWS Remove Compensation Remove Retention
article thumbnail

The Complete Guide to SaaS Pricing Strategy

Tom Tunguz

AWS, Twilio, Heroku, etc. Called field sales or outside sales people, their compensation starts at about $250k per year for on-target earnings (OTE - combination of salary and sales commission). ” The company grew from $15M in ARR to more than $1B with this model, consistently achieving better than 130% net dollar retention.

article thumbnail

The Most Common SaaS Sales Potholes and How to Avoid Them with Mark Roberge (Podcast #498 and Video)

SaaStr

It’s 2021, but surprisingly, a significant number of SaaS companies still use outdated sales compensation plans. Salespeople are often compensated at the highest rate when they win brand new business, but that might not be good for revenue expansion and might contribute to churn. Roberge recommends starting with product-market fit.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Playbook: Scale to $100M+ ARR with a Usage-Based Pricing Model

OpenView Labs

This is why we’re seeing more and more SaaS companies—Datadog, Twilio, AWS, Snowflake, and Stripe, to name a few—find success with product led growth paired with usage-based pricing. It requires shifts in go-to-market strategy, sales compensation, financial planning, billing, and much more. Then they tell their boss what to buy.

Scale 98
article thumbnail

How Top Sales Leaders are Adjusting their Sales Process (Video + Transcript)

SaaStr

This, “Revenue retention is the magic of SaaS, but logo retention wins the wars,” how are you guys thinking about just keeping customers even when they’re under stress because that’s a meta-issue, how you think about it as a company and then how you think about it as sales leaders? Good morning, everybody.

article thumbnail

4 Traits of Fast-growing SaaS Companies

OpenView Labs

AWS and other infrastructure providers have been using UBP for nearly a decade. It’s clear that faster-growing businesses are taking advantage of more creative pricing models, however, the switch to usage-based pricing can represent a host of challenges from revenue recognition to sales compensation.

article thumbnail

No, You Can’t Just Switch to a Usage-Based Pricing Model Overnight

OpenView Labs

And compared to their peers, companies with usage-based pricing trade at a 50% revenue multiple premium and see 10 percentage points better net dollar retention rates. SaaS companies exploring a usage-based model need to plan for both go-to-market and operational challenges spanning from pricing to sales compensation to billing.

Pricing 69
article thumbnail

The SaaS Debate: Who Owns the Renewal and Upsell? Customer Success vs. Sales

ChurnZero

Why would we replicate that awful and uncomfortable experience we have in the B2C world with our B2B buyers? She acknowledges that Customer Success exists to retain the customer but says that retention happens in the space between signatures. Both the CSM and SE are compensated on the sale, so it’s a team-based approach.”.

Scale 98