The Annual Per-Seat SaaS Contract: Not Quite The Gold Standard It Used To Be
SaaStr
MARCH 11, 2021
Q: Why do SaaS companies bill annually up front? A lot of SaaS pricing originally comes from classic enterprise software. SaaS then remixed this model by charging less in Year 1 for a “subscription”, but often more over time, especially by Year 3. So the upfront payment for a year isn’t dead. Perhaps they shouldn’t.
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