Sequencing Business Models: The Types of Marketplaces

Casey Accidental

This is part two of a three part series on sequencing business models. Casey’s first sequencing business models essay talked about the transition from a SaaS business model to marketplace business model, and why it’s so difficult.

Sequencing Business Models: The Types of Marketplaces

Casey Accidental

This is part two of a three part series on sequencing business models. Casey’s first sequencing business models essay talked about the transition from a SaaS business model to marketplace business model, and why it’s so difficult.

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Understanding the SaaS business model

ProfitWell

The SaaS business model powering all of this activity is startlingly unique, still young, and inextricably tied to the power of cloud computing. SaaS, or software as a service, is a delivery model in which a centrally hosted software is licensed to customers via a subscription plan. What is the SaaS business model. As a result, revenue recognition is a fundamental part of the SaaS business model. The stages of SaaS businesses.

How pricing strategy helps shape your entire business model

Inside Intercom

The SaaS industry is constantly evolving, and for many companies in the space, that means having to evolve their business model. However, that doesn’t necessarily mean a “pivot”, but more often the evolution is a shifting business model as the company scales and the user base grows and changes. No matter the specifics of how your company adapts and grows, it’s crucial to be aware of how your pricing strategy relates to other aspects of your business.

How to Package and Price Embedded Analytics

HOW TO PACKAGE & PRICE EMBEDDED ANALYTICS. 15 Pricing for Value Organizing Your Tiers. Competitive Pricing. About Logi Analytics and Software Pricing Partners.25 value, priced accordingly. 01 Are you packaging and pricing for the masses.

Sequencing Business Models: Can That SAAS Business Turn Into a Marketplace?

Casey Accidental

Founders have started reaching out asking for help converting their SAAS or SAAS-like business into a marketplace. I’ve helped their business, but they’re asking for help driving more customers. Now, this story itself explains why many businesses fail to make the conversion to marketplace. What Types of Businesses Are We Talking About? Developer platform: a business where developers can build businesses on top of the business’s software and charge customers.

SaaS Pricing Models & Strategies Demystified

Baremetrics

Pricing can be one of the most overwhelming and puzzling parts of business. SaaS businesses, in particular, have a unique challenge with pricing for a few reasons: There’s an almost infinite number of different ways to price a SaaS product. The cost to produce and maintain a SaaS product is generally unrelated to the value a customer receives, so pricing based on how much margin (profit) doesn’t make sense for the most part. What is pricing?

What’s an effective price? Price effective strategies & subscriptions

ProfitWell

There’s a question that every startup founder, subscription service provider, and ecommerce store owner, needs to ask themselves on a regular basis: Is this the most effective price for my product or service? Finding an effective price helps you solidify your position, build trust with your customers, and achieve your business goals. In this article, we’ll walk through what makes up an effective price and how to conceptualize the most effective price for your business.

What is the subscription revenue model? | ProfitWell

ProfitWell

The subscription revenue model is hardly new. It’s simple: the subscription revenue model benefits both customers and companies. Customers enjoy the convenience of auto-renewals and having access to a high-value offer for a low ongoing investment. It’s no wonder more and more companies are shifting to a subscription business model. What is the subscription revenue model? What kinds of businesses use a subscription revenue model?

Usage-Based Pricing: What SaaS Companies Need to Know

Baremetrics

Enter usage-based pricing. In this guide, we’ll take a deep dive into usage-based pricing, how it works and who it’s for. What is usage-based pricing? What are the advantages of usage-based pricing? What are the downsides of usage-based pricing? Solo businesses?

Seed Investing Today: What’s Changed, What Hasn’t with Aileen Lee and Jason Lemkin (Video + Transcript)

SaaStr

What Nobody Tells You About Seed Investing with SaaStr CEO Jason Lemkin and Cowboy Ventures Founder and Partner Aileen Lee. I think it gives us a perspective that maybe we don’t get in some other places, in addition to many great investments over the years. On either a scale of 1 to 10 or a percentage basis, where is seed investment? I think that’s going to be an awesome time to invest, but I don’t think we’re quite there yet.

SaaS Pricing Guide: When & How to Raise Prices Without Losing Customers

OpenView Labs

Segment CEO and Co-founder Peter Reinhardt was recently reflecting on what were his top lessons learned from changing packages and pricing. Without batting an eye, the unicorn founder said, “The first is to raise prices and that we discovered we could raise prices by probably ten thousand times from what we were initially charging and people were happy to pay for that.”. Successful price increases drive a far higher profit improvement than any other initiative.

Pricing Optimization: Why and How You Need to Optimize Your Prices

ProfitWell

For years, I’ve seen companies start their pricing journey by simply pulling a number out of their hat and calling it a day. Some get close, guided by their competitors’ prices (which were likely pulled from their own hats). We’ve talked before about pricing strategy being like a dartboard. Guessing at your pricing is a little like throwing darts blindfolded. That’s where pricing optimization comes in. You can’t afford to overlook optimizing your pricing.

Value Delivery Patterns Shape Your Pricing Choices

OpenView Labs

The when becomes a critical input into designing your pricing model. Working with a large B2B SaaS company that has a long implementation and configuration cycle, we uncovered contradictions between their pricing and how the customer was getting value. This company manages time to capture implementation costs (how many months will it take until revenue collected exceeds investment in implementation), with a target to capture these within four months.

From Product-Market Fit to Product-Market-Price Fit

OpenView Labs

For the uninitiated, product-market fit can be understood as instances when a startup introduces a new product that meets a real customer need, does so in a way that’s better than alternatives and in a market that can support a standalone business. Unfortunately, all of the focus on product-market fit glosses over a concept that’s equally as important to a startup’s success: pricing. Product-market-price fit. 2x more likely to pursue the wrong business model.

Move Over Subscriptions. The Future Is Elastic And Built Around Relationships.

Chargify

Over the last decade, recurring revenue has emerged as the preferred model for businesses moving beyond transactional commerce. pricing or the traditional “Good, Better, Best” plans—many businesses have found static subscription offers don’t always align with customers’ needs and limit growth potential. These forward-thinking businesses are using diverse monetization strategies to better serve their customers and differentiate their offers from the competition.

How B2B Subscription-Based IoT Businesses Are Changing The World

Chargify

At its most basic definition, Internet of Things is “a network of internet-connected objects able to collect and exchange data,” according to Business Insider. A McKinsey Quarterly article points out, “while the consumer’s adoption of fitness bands and connected household appliances might generate more media buzz, the potential for business usage is much greater.”. Why IoT + Subscription Business Models = Success. Benefits Of IoT Subscription Businesses.

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SaaStr Podcast #398 with Salsify Co-Founder & CMO Rob Gonzalez

SaaStr

How does Rob think through pricing today in a way that encourages land and expand? How does Rob think about usage vs seat-based pricing in SaaS? How should sales and marketing work together on pricing? Marketing Podcasts SaaS Product Pricing rob gonzalez salsify

Should You Raise Prices When Your Costs Go Up?

OpenView Labs

The knee jerk reaction to an increase in costs is often a price increase. Some years ago, I was sitting in the office of the VP of Pricing at a major manufacturing company. He was called out of our meeting by the CEO to explain to the board how he was going to protect margins by increasing prices. He suggested lowering the cost of equipment and increasing the prices of software services. They clarify models and are easy to connect to causal and predictive models).

SaaStr Podcast #395 with UserTesting CEO Andy MacMillan

SaaStr

Why does Andy think the seat-based pricing model in SaaS will die? Why is volume-based pricing optimal? How does one instil volume based pricing without disincentivizing usage? I don’t subscribe to the servant leadership model.

SaaS Freemium Model: What Works, What Doesn’t?

Incredo

You analyze your needs and the pricing plans and pay for the most comfortable one. SaaS freemium model: The What, The How and The Why. Freemium business model is when you give your product to the users for $0, provide them with the basic value of your product for unlimited time but at the same time encourage them to become a paying customer in order to have access to more advanced features. Note that freemium model ? And so does the freemium pricing model.

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An Inside Look at How SurveyMonkey Overhauled Pricing After 10 Years

OpenView Labs

But what you may not know is how dramatically the product has changed over the last twenty years, or that the company recently implemented a truly comprehensive pricing and packaging update. Pri Carr leads SurveyMonkey’s business strategy, operations and corporate development teams, and Jordan Nolff heads up the company’s monetization and pricing strategy. Changing pricing is always a touchy subject, rife with the potential for internal upheaval as well as customer backlash.

SaaStr Podcasts for the Week with Facebook Workplace and Slack ? May 29, 2020

SaaStr

What do CIOs most want in pricing? How does Christine think about the pricing problem of having a variable pricing mechanism without disincentivizing usage? Christine Trodella: Thinking back to the really early days when we were just starting to scale the business and there was so much interest in the platform, so many people, advertisers wanting to understand how to leverage it. And we used this private instance of Facebook for our own business.

Annual vs Monthly Subscription for SaaS Businesses: Weighing the Pros and Cons

Incredo

Whether you are a startup owner, a manager of a growing business or the CEO of an established company, you might find yourself asking questions like “ Should our SaaS subscription model be monthly, annually or both ?” or “ What are the best tips I can get in terms of annual vs monthly subscription models ?”. History of the subscription pricing model: From newspapers to the rise of SaaS subscription. What is the subscription pricing model?

SaaStr Podcast #348 with Dataiku Chief Customer Officer Kurt Muehmel

SaaStr

To date, the company has raised over $146M in funding from some of the best in the business including ICONIQ, Firstmark, Battery Ventures and CapitalG to name a few. How does Kurt think about the right pricing mechanism for the customer today? Harry Stebbings: To date, the company’s raised over $146 million in funding from some of the best in the business, including ICONIQ, Firstmark, Battery Ventures, and CapitalG, to name a few.

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Pricing for SaaS Enabled Marketplaces - When to Go Free

Tomasz Tunguz

SaaS Enabled Marketplaces employ elegant business models. At Redpoint, we’ve invested in more than 15 marketplaces and have evaluated dozens more, including more than 20 SEMs in the past year. So which type of pricing should SEMs pursue? These are the questions we use internally to hypothesize the best pricing models for SEMs. An SEM’s pricing model should reflect the founder’s thesis on market size expansion or contraction.

SaaStr Podcasts for the Week with Chargebee and Glassdoor — November 1, 2019

SaaStr

As for Krish, under Krish’s leadership the team has grown to over 300 people and over 5,000 clients making it one of the next generation in truly global SaaS businesses started in India. Hear about the early days of Glassdoor; tactical lessons on scaling—from building a business model and recruiting an all-star management team to advice on building a compelling, innovative company culture; and learn whyGlassdoor’s $1.2 That’s the beauty of that business.

How Atlassian built a $20 billion dollar company with no sales team

Inside Intercom

But there is a company that has found a way to scale its software business with an entirely different model: Atlassian. The typical path to hypergrowth is to invest a huge amount into sales to gain customers in the hope that the lifetime value of those customers will make the initial sign-up costs worthwhile. Why the low touch sales model works for the 21st century buyer. The appeal of Atlassian’s approach for other businesses is obvious.

SaaStr Podcasts for the Week with Chris O’Neill and Jason Lemkin

SaaStr

So although I never really became a great sailer, I really love the metaphor of sailing for life and for business and I think we can have some fun with it in today’s talk, and I hope you’ll indulge me. The second is really the how to think about your crew, really, how to take care of your crew, how to up-level your crew, how to invest in them, how to listen and engage them, and then also how to think about your extended crew. Shifting to the fifth is around pricing.

Five Subscription Business Struggles – And How to Fix Them

Rebilly | Insights Into Subscription Billing

You run a subscription business for several reasons — not least is the advantage of having predictable, recurring revenue. Other reasons why subscription businesses are booming include: Subscription businesses can easily diversify their prices and products to match customer needs (by changing payment plans, using add-ons for specific memberships, etc.) Much like any business model, subscriptions have their challenges, too.

How to venture into product-led growth and scale successfully

SaaStock

The unique model that the Boston-based VC firm has is to provide strong support to companies post their investment to help them refine business models, pricing, marketing so they can ultimately scale. The guest on the latest episode of the SaaS Revolution Show is Ashley Murphy, Director of Growth at OpenView Ventures. She shares insights about the benefits of product-led growth and how to go about implementing it in your company.

Top 10 Resources To Help You Manage Your SaaS Sales Like a Genius

Incredo

maintain healthy atmosphere in your Smarketing team, make smart choices regarding your SaaS sales model, strategy, pricing, . better understand Inbound, and learn about major tactics that you can implement, master your SaaS pricing page and increase your conversions. (We And from SaaS sales models to SaaS pricing. If you are satisfied with your sales model and need to learn about employee compensation model, just skip the first article.

a Taylor Swift for everything

ProfitWell

Your pricing checkpoint?. Before you get too excited about selling your products, it’s important to reflect on your pricing. Today, we’re sharing some intel on different pricing strategies you can apply to DTC. How does DTC differ from wholesale & retail pricing?

The Unspoken Hard Bits of Bootstrapping

Outseta

“ I think we talk way too much about whether we prefer bootstrapping to raising venture capital, and way too little about which path is compatible with our business idea and life circumstances. ” This is solely a matter of the business model. Growing a SaaS business

Subscription finance 101: how to finance subscription companies

ProfitWell

Subscription businesses face a variety of challenges unique to their specific model. These businesses need to emphasize (and analyze) certain metrics that other, more traditional businesses often do not. Certain practices make it much easier for a subscription business to properly gauge its health. Subscription business owners can take a wealth of steps to finance their brands. Strategic pricing. Pricing is more difficult. Business model.

7 Best SaaS Billing Systems (2020)

Baremetrics

Fast forward to today when most software companies use a Subscription as a service (SaaS business model , and things aren’t as simple. You have to deal with recurring payments, multiple pricing plans, annual vs monthly payments, add-ons, variable payments and the list goes on.

SaaS Growth: Top Strategies and Trends for SaaS Growth

ProfitWell

The SaaS industry is growing fast, but if you want to be one of the companies contributing to that trend, you'll need to know the secrets of successful SaaS businesses. By almost all key metrics, now is a great time to get into the SaaS business model. Pricing Changes.

Mental Models to Help You Grow

Sales Enablement, SaaS and Growth

One of the biggest challenges businesses face when they grow is scaling effective , autonomous and quick decision-making. It has a compounding effect - the more good decisions a business makes, the better the results will be. To help your employees make effective, autonomous and quick decisions you should leverage mental models. Google, Apple and HubSpot are just three examples of industry-leading companies which use mental models to aid quick decision-making.

The Metrics-driven SaaS Business

Chaotic Flow

My first reaction was something like: “Well our current booking rate is pretty strong and we’re a SaaS business, so even with no immediate improvement to bookings we’ll continue to pile up revenue quarter after quarter, right?” At the time, SaaS investors and executives were still getting their heads around the SaaS recurring revenue business model, so there were very few resources to turn to for support. What makes a SaaS business different? SaaS Business Stability.

Raising Funding During COVID with Homebrew Partner Satya Patel (Video + Transcript)

SaaStr

As much as VCs spend time evaluating the markets, evaluating businesses, trying to predict the future, we don’t know any more than any of you in relation to what’s going to happen here over the next 12, 18, 24 months. So, what are VCs busy doing right now?