FastSpring

SEPTEMBER 16, 2022

But what about pricing? When FastSpring’s Chief Product Officer Kurt Smith worked with growth-stage to Fortune 100 companies at Accel-KKR, he consistently saw pricing as one of the most essential growth levers they employed to meet their next revenue goal. Why You Shouldn’t Trust How Your Competitor’s Price.

Pricing 118

Pricing Payment Solutions Payment Services SaaS Payments 118

Baremetrics

AUGUST 8, 2021

For most, the easiest ways to increase customer acquisition rates are to offer a freemium model or price your product on the lower end of the spectrum. However, to keep your business afloat, you’ll need to effect a SaaS price increase. Results in an Increase in Revenue 2. Raise Prices for New Customers 2.

Pricing 111

Pricing SaaS Scale Churn 111

Stax

APRIL 18, 2024

Independent Software Vendors (ISVs) and Software-as-a-Service Providers (SaaS) operate within the same market, thus creating a push-and-pull revenue dynamic. While they operate under different business models, ISVs and SaaS share similarities in software development, cross-platform accessibility, and industry reach.

Outsourcing Services 88

Outsourcing Services SaaS Payments Payment Services Payment Methods 88

Blulogix

NOVEMBER 8, 2023

Accelerating Subscription Business Growth with Usage-Based Pricing By BluLogix Team The subscription business model has long been recognized as a steady path to recurring revenue and business growth. The Evolution of Pricing Traditionally, subscription businesses offered fixed-rate plans.

Subscription 52

Subscription Payment Features Pricing Business 52

Blulogix

FEBRUARY 17, 2024

The Art of Flexibility: How to Master Dynamic Pricing Models in Subscription Billing By BluLogix Team Adapting to the Pulse of the Market for Maximized Revenue In today’s rapidly evolving digital marketplace, static pricing models are becoming a relic of the past.

Subscription 52

Subscription Payment Features Pricing Marketplace as a Service 52

User Pilot

MARCH 20, 2024

This article will go through 13 software monetization solutions to help your software product create great revenue streams and drive product growth. TL;DR Software monetization helps generate revenue using various new business models to reinvest in development and enhancements.

Software 59

Software Revenue Strategy Advertising 59

SaaStr

JULY 5, 2023

New Workloads Are Only a Small Percent of Today’s Revenue, But Are The Majority of Tomorrow’s. I like this chart a lot showing both the awesome power of high NRR, and also how you have to invest in customers that scale with you over time. New workloads, new uses of Mongo are actually just a small percent of revenue.

Scale 184

Scale cloud efficiency Cloud Business Model 184

Sixteen Ventures

AUGUST 14, 2022

The people in charge of your company – the Executives, Board, and Investors – want to improve a metric called NRR (Net Revenue Retention or NDR, Net Dollar Retention, if you prefer) for one very simple reason: it plays a direct role in the value of the company. What is NRR? Talk about efficient growth! Decrease Contraction.

Customer Success 97

Customer Success Investment Sales Hiring Retention 97

Blulogix

OCTOBER 11, 2023

5 Ways Managed Services Providers (MSPs) Add Top-Line Revenue By BluLogix Team Don’t forget to sign up now to learn more about how to implement usage based pricing models in our upcoming webinar with MGI Research. In this blog post, we’ll explore five effective strategies that MSPs can employ to add top-line revenue.

Revenue 52

Revenue Management Cybersecurity Healthcare 52

OpenView Labs

JANUARY 13, 2022

Welcome to the third edition of the Pricing Transformations series. Pricing Transformations in 2020. Pricing Transformations in 2021. Pricing models must be adaptable – 4/5 on this. We took off a point as there are still too few people who understand pricing models well enough to make them adaptable.

Pricing 82

Pricing Payment Services SaaS Payments Payment Solutions 82

Casey Accidental

NOVEMBER 13, 2019

SAAS-like: any number of different models where a business sells software to businesses online, but does not charge via a subscription e.g. transactional or pre-revenue. Why Changing Business Models and Customers is Always Hard. Slack, Adobe, Atlassian. 1 Saturated Growth in SAAS. Old habits die hard.

Marketplace as a Service 106

Marketplace as a Service Business Model Business Underperforming Technical Team 106

SaaStr

NOVEMBER 15, 2022

This flexible mindset creates just the right conditions for embracing evolving business models and new metrics. A general understanding of the SaaS business model grew as the SaaS sector matured. as a common language to analyze a cloud business. Recurring Revenue = 90% +. Gross Margin = 70% +. ASP = $30K +.

Metrics 217

Metrics Machine Learning Artificial Intelligence Technical Review 217

Blulogix

NOVEMBER 8, 2023

Transforming the Technology Industry: The Power of Usage-Based Pricing By BluLogix Team The technology industry is in the midst of a profound transformation. Traditional pricing models, such as fixed subscriptions and one-time purchases, no longer align with the dynamic and ever-evolving nature of this sector.

Technology 52

Technology Pricing Payment Features Subscription 52

OpenView Labs

FEBRUARY 9, 2021

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. Usage-based pricing will be the key to successful monetization in the future.”. Usage-based pricing is in all layers of the tech stack.

Scale 98

Scale Pricing Scaling AWS 98

Blulogix

NOVEMBER 8, 2023

How Your Usage-Based Pricing Strategy Can Help You Stay Competitive in the Crowded Market By BluLogix Team In today’s fast-paced business landscape, staying competitive is more challenging than ever. One powerful tool in your arsenal is a well-crafted usage-based pricing strategy. Usage-based pricing caters to both.

Pricing 52

Pricing Strategy Scale Marketing 52

Clouded Judgement

NOVEMBER 10, 2023

The cost decrease is very meaningful - it’s lowers the barrier to experiment with AI, and also lowers the barrier for these AI functionalities to be pushed into production (because vendors don’t have to increase price nearly as much). Revenue multiples are a shorthand valuation framework. Top 5 Median: 14.5x

Cloud 183

Cloud Artificial Intelligence AI GCP(Google Cloud Platform) 183

SaaStr

NOVEMBER 25, 2022

They demonstrate spectacular growth and expansion while revolutionizing and disrupting industries with new business models. Atlassian’s Chief Revenue Officer, Cameron Deatsch, walks us through how Atlassian grew over the course of 20 years and became one of the most successful startups today. How Atlassian does business .

Scale 226

Scale Scaling Marketplace as a Service Entrepreneurship 226

SaaStr

JUNE 20, 2022

As Allin explains, “In telling your story, [communicate] your thesis on why you think your company needs to exist, and why you think there is a huge market opportunity…[be] very clear about what your product currently accomplishes, the product roadmap that’s ahead, and the business model that you’re going to use to monetize that.”.

Venture Capital 199

Venture Capital Management Business Model Investment 199

Clouded Judgement

MARCH 31, 2023

How Will AI Effect Software Business Models? Like many, I’ve been thinking about how AI and foundation models will effect the world of software. In particular - how AI will effect software business models. If we head to their pricing page we’ll see that the most popular plan is $8 / user / month.

Cloud 130

Cloud Sales Hiring AI Headcount 130

Casey Accidental

OCTOBER 20, 2020

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. This essay is a collaboration with Gilad Horev.

Marketplace as a Service 52

Marketplace as a Service Business Model SaaS Payments Payments 52

OpenView Labs

SEPTEMBER 8, 2021

2021 has proven to be the year of usage-based pricing. . 45% of expansion stage SaaS companies now say they have a usage-based or consumption-based pricing model, according to data from OpenView’s forthcoming 2021 Finance and Operations benchmarks report. . Product: Treat product investments as a revenue-generating expense.

Pricing 64

Pricing Customer Success Scale Compensation 64

SaaStr

JULY 27, 2022

Boterri’s company Accel invested in PayFit in 2017 and again in 2021. Sales teams play a critical role in growing a business. But your sales needs when selling to small and medium-sized businesses differ from an enterprise-level market. At PayFit, a healthy culture is key to fighting attrition and growing the business.

SMB 193

SMB Sales Hiring Scale B2C 193

ProfitWell

NOVEMBER 6, 2019

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. What is the subscription revenue model?

Payment Features 74

Payment Features Payments Subscription Revenue 74

User Pilot

MARCH 25, 2024

An accurate valuation is necessary to secure the right price for the company or adequate funding without diluting its share value. It uses revenue and operating costs to determine the company’s value. The multiple depends on numerous factors, like sustainability and transferability of revenue and growth.

SaaS 105

SaaS Customer Lifetime Value Acquisition Metrics 105

SaaStr

JULY 27, 2023

Investors currently struggle with price finding for these rounds. There’s no new normal or price set yet, and that uncertainty creates a little bit of fear among investors to overpay. “Am And finding that right clearing price is still a work in progress. Now, it’s closer to $2M, with many good funds investing between $2.5M

AI 188

AI Trends Banking Pricing 188

SaaStr

SEPTEMBER 20, 2023

A Pivot From Growth At All Costs To Driving Profitability The Cloud model of recurring revenue, low marginal distribution costs, and strong net dollar retention dynamics is possibly one of the best and most resilient business models ever invented. Bessemer believes the top private Cloud companies will follow suit.

Cloud 248

Cloud Payments Software Review Payment Solutions 248

ProfitWell

JANUARY 13, 2020

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? If the answer is no, then there is potential for revenue-related issues as your company matures. What is an effective price?

Pricing 52

Pricing Subscription Payment Features Strategy 52

OpenView Labs

FEBRUARY 4, 2020

Segment CEO and Co-founder Peter Reinhardt was recently reflecting on what were his top lessons learned from changing packages and pricing. While Segment may be an extreme case, the business is far from unique in learning that it was leaving money on the table due to its pricing. Pricing Is Your Best Shot at Growing 25% Faster.

Pricing 60

Pricing Scale Technical Review Software Review 60

Stax

FEBRUARY 21, 2024

And it worked; the Model-T was the most-produced car in the world until 1975. So, of course when it came to revenue-driving activities, Ford knew that success in marketing—and business—wasn’t about how much your marketing spend is, but how efficiently you spend it. This is where the SaaS Magic Number becomes particularly handy.

SaaS Payments 88

SaaS Payments Payments Payment Services Stax 88

SaaStr

MAY 4, 2021

You change / make up a new valuation based on how much the VC wants to invest. Don’t change the price, at least not explicitly, based on a VC saying they’d invest $Xm or $Xk. “Oh Oh if you want to invest $2m, then the price is $20m. Don’t bring up anecdotes about every company a VC has invested in.

Venture Capital 231

Venture Capital Investment Pricing Business Model 231

Incredo

JUNE 25, 2019

You analyze your needs and the pricing plans and pay for the most comfortable one. 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.

SaaS 236

SaaS Pricing Software Review Acquisition 236

Baremetrics

OCTOBER 22, 2020

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 advantages of usage-based pricing? What are the downsides of usage-based pricing?

SaaS Payments 80

SaaS Payments Pricing Scale Payment Services 80

User Pilot

AUGUST 6, 2023

Because the omnichannel experience will encourage customers to stick around longer, this has the knock-on effect of increasing customer lifetime value (LTV) or even generating expansion revenue. Promotional emails are consistent with the information on your pricing pages. Data-driven decisions. Data security or compliance risks.

Investment 97

Investment Banking Social Media Customer Lifetime Value 97

Tom Tunguz

DECEMBER 6, 2015

SaaS Enabled Marketplaces employ elegant business models. SEMs can generate revenue in four ways: charge the buyer and/or supplier a software fee & charge the buyer and/or supplier a marketplace fee. So which type of pricing should SEMs pursue? In addition, a startup must determine what rake to charge. SEM or FSEM?

SaaS Payments 100

SaaS Payments Pricing Outsourced Development Payment Solutions 100

OpenView Labs

MARCH 26, 2019

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. In reality, we think this is rare, but a lot of pricing models assume this.

Pricing 62

Pricing B2B Finance Consulting 62

OpenView Labs

FEBRUARY 12, 2019

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. But is it a good idea?

Pricing 56

Pricing Customer Lifetime Value Business Model Acquisition 56

SaaStr

JUNE 6, 2021

Your core product will get you very far, but at some point, you must consider offering more product lines to keep enterprise customers invested. But after adding additional workflows and products, they expanded their revenue so that now, that original IT workflow product makes up only 62%. . Learning 4: Wait to Monetize Your Platform.

Enterprise 149

Enterprise Pricing Retention Revenue 149