article thumbnail

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

OpenView Labs

The researchers blame “premature scaling” as the root cause, pointing out that 70% of startups in the study scaled before they were ready and that startup founders substantially underestimate how long it takes to validate their market. It’s no wonder that the startup community obsesses over finding product-market fit.

article thumbnail

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

Casey Accidental

Kevin Kwok and I have often discussed that growth at some scale equals an adjacent business model: Ecommerce businesses trend towards marketplaces over time e.g. Amazon. Why Changing Business Models and Customers is Always Hard. Also, how should the SAAS tool price these additional customers?

Insiders

Sign Up for our Newsletter

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

article thumbnail

First Value, Then Price, Then Product

SaaSX

Given the widespread recognition that value-based pricing drives faster growth and higher returns, why do so few companies apply it? The most common product development sequence is as follows: Begin with a product. Use the costs to set a price (cost-plus pricing). Use the costs to set a price (cost-plus pricing).

Pricing 59
article thumbnail

6 Pillars (And Traps) Of a Freemium Business Model

SaaSHolic

For Saas businesses, in particular, freemium has become very popular because it is a common sense way to do product marketing. Of course, other products can take advantage of this as well. Many marketers make mistakes when they adopt freemium. Have you miscalculated the price point? Automatic Conversions.

article thumbnail

Usage-Based Pricing Playbook: Customer Success Is A Mindset, Not Just a Job

OpenView Labs

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
article thumbnail

Product Market Fit: Finding Your Product’s Place in the Market

ProfitWell

Ari Wells is the VP of Product Marketing at cloud service mogul Akamai. He joined us on stage at Recur 2018 to talk about how their team takes a product from concept to launch. You hear about product market fit a lot these days, and with good reason. What is Product Market Fit?

article thumbnail

How pricing strategy helps shape your entire business model

Intercom, Inc.

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. Gaining new customers.