OpenView Labs

APRIL 8, 2021

While many of the most successful public and private SaaS companies were already usage-based, there wasn’t a clear playbook on the complexities of scaling a usage-based business. The response since the usage-based pricing playbook has far exceeded my expectations. Pure usage-based pricing isn’t for every product.

Pricing 97

Pricing Scale Subscription Payment Features 97

Tom Tunguz

MAY 1, 2023

Conversations about contracts & pricing are kicked down the road until the customer sees value & the path to capture it. As a company scales, founders transition sales to others. Design partners, pilots, or founder-led sales - they have many names - these customers work with a startup to solve a problem.

Scale 167

Scale Engineering Outsourced Development Sales 167

SaaStr

MARCH 31, 2022

This episode is an excerpt from a session at SaaStr Scale. And I think some folks sort of asked, “Did you have to change your product to get on the marketplace or your pricing?” And I would also say, regardless of the field, is how you go about compensating this channel. Rico Mallozzi, Sr. Colleen Kapase.

Scale 216

Scale Marketplace as a Service Cloud SaaS Payments 216

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. . Pricing: Keep it simple even if that means leaving some money on the table.

Pricing 64

Pricing Customer Success Scale Compensation 64

SaaStr

AUGUST 29, 2022

10 Lessons Learned Scaling to $1B Valuation with Drift’s Co-founders : Reaching unicorn status is nice validation, but the luster fades when founders can’t navigate the hidden challenges that come with uncharted territory. Scaling Revenue in 2022: What’s the Same and What’s Different? What Could Possibly Go Wrong?

Scale 259

Scale Sales Hiring Marketplace as a Service B2B 259

Clouded Judgement

JANUARY 19, 2024

Subscribe now The Bar For Going Public There’s a lot of talk recently about “are IPO markets open” or “what scale do I need to get public.” There are very few companies that ever get to $200m, let alone can sustain 50%+ growth at >$100m ARR scale. Follow along to stay up to date!

Cloud 177

Cloud Scale Compensation Metrics 177

OpenView Labs

MARCH 16, 2021

The usage-based pricing model almost feels like a cheat code —it enables SaaS companies to more efficiently acquire new customers, grow with those customers as they’re successful, and keep those customers on the platform. But the shift from pure subscription to usage-based pricing is nearly as complex as going from on-premise to SaaS.

Pricing 52

Pricing Payments SaaS Payments Payment Solutions 52

SaaStr

JULY 23, 2020

The average package price is USD 500 for subscription/month. But it’s a lot of accounting and not really worth it once you are at any scale. A bit more here: The ultimate guide to SaaS Sales Compensation Plan | SaaStr. Q: What is a good model for SaaS product sales commission? Often at roughly at 50/50 ratio.

Scale 175

Scale Compensation Subscription Payment Features 175

SaaStr

MARCH 8, 2021

The average package price is USD 500 for subscription/month. But it’s a lot of accounting and not really worth it once you are at any scale. A bit more here: The ultimate guide to SaaS Sales Compensation Plan | SaaStr. Q: What is a good model for SaaS product sales commission? Often at roughly a 50/50 ratio.

Scale 167

Scale Sales Compensation Churn 167

Tom Tunguz

NOVEMBER 7, 2019

The discipline of customer success varies widely depending on price point. At the lower price points, some organizations combine the role of an account manager and the customer success person into a CSAM (customer success account manager). Nick mentioned percent of ARR at scale spent on customer success.

Compensation 109

Compensation Scale Benchmarks Customer Success 109

Kellblog

AUGUST 7, 2019

I’ve been asked about this a few times lately, less because people value my accounting knowledge [1] but rather because people are curious about the CAC impact of such deals and how to compensate sales on them. Equal Value: The Price-Ramped Deal. Price-Ramped). The hard part is figuring out sales compensation and CAC.

Deferred Revenue 74

Deferred Revenue Pricing Payments SaaS Payments 74

FastSpring

AUGUST 3, 2022

Note: FastSpring helps companies scale with fewer company resources. You don’t always have time to compensate for unexpected events in your market, but the key is to speed up how quickly you can measure the impact of the investments you’re making today. Learn more here. Speed Up Your ROI Measurements.

Scale 136

Scale Revenue Sales Compensation 136

ProfitWell

JUNE 27, 2019

For a young company, choosing a pricing method and establishing your overall pricing strategy can be daunting - it's the moment where you find out how much people actually value your beloved idea and how much they're willing to pay for it. That’s why it pays to get your pricing methods right. What are pricing methods?

Pricing 43

Pricing Scale Market Research Compensation 43

Tom Tunguz

FEBRUARY 15, 2018

Otherwise, they may leave the business, lured by the promise of greater compensation elsewhere. By granting more options at the end of the second year equal to or greater than market comparables, the startup will ensure its compensation packages are competitive. Factors like strike prices and taxes are other important considerations.

Startup 148

Startup Compensation Retention Pricing 148

SaaStr

JUNE 24, 2022

There is a lot more elasticity in pricing than one might expect. If you try to increase your prices and no one is willing to pay, that’s a flag that your product isn’t providing enough value. You also have to be very careful about raising prices for current customers. Double Your Pricing. #8.

Sales Recruiting 229

Sales Recruiting Sales Hiring Scale Customer Success 229

Clouded Judgement

JULY 21, 2023

When new products are being built and engineers are hired you’re paying those engineers compensation when the products they’re building aren’t generating any revenue (because they haven’t been built yet…). Here’s a great graphic from the Scale Ventures team on Box’s transition.

Cloud 130

Cloud Software Sales Hiring Scale 130

OpenView Labs

FEBRUARY 27, 2019

Building Your Foundation: Product Market Fit and Pricing. Pricing – Finding the Sweet Spot. Not unlike the iterative development process of the product itself, coming up with your pricing involves a lot of experimentation. In addition to the actual dollar amount, there are other pricing factors to consider.

Technical Review 73

Technical Review Pricing Data Marketing 73

SaaStr

MARCH 27, 2019

Over Leyla’s incredible 11 year journey with Salesforce she has seen the team scale from 1,800 to over 40,000 and revenue scale from $500m to over $16Bn. What were Leyla’s biggest learnings on people and business model through seeing the first hand hyper-scaling of Salesforce from $500m to $16Bn?

Scale 131

Scale VP of Engineering Mobile Scaling 131

OnStartups

MAY 18, 2021

Resist the temptation to create complicated compensation plans. If you reward just “deals getting done”, you’ll get deals — but at too high a price. Once your LTV is a multiple of your COCA, you’re ready to start turning the knob and scaling the business a bit (hiring more sales people). Don't say you weren't warned.

Sales Hiring 110

Sales Hiring Scale Underperforming Technical Team Startup 110

Neil Patel

AUGUST 26, 2020

And even when it does, you can contact your hosting service and you will get compensation. Generally, the higher the price, the faster your pages will load. This option is best if you’re planning to scale your website fast. If you have plans to scale your traffic to enormously high levels , this is the only option for you.

Technical Review 145

Technical Review Scale Pricing Customer Support 145

Chargify

SEPTEMBER 10, 2019

While the math portion may be simple, tying revenue to reps and accurately tracking revenue performance over time is anything but simple—especially in a fast-paced segment like SaaS where any given rep could be selling different price points, billing frequencies, and even billing models like fixed-price vs. metered-usage. .

Payments 61

Payments SaaS Payments Scale Compensation 61

Sales Hacker

MARCH 12, 2020

Is compensation too low? Compensate all sales positions in the same way. They likely come at a lower price and are eager to learn, and, in some cases, they may only be lacking industry exposure. RELATED: 5 Ways to Keep Your Sales Machine Efficient While Scaling Headcount. Rework your compensation structure.

Sales Hiring 76

Sales Hiring Sales Recruiting Compensation Underperforming Technical Team 76

Sales Hacker

OCTOBER 7, 2020

Next, look at newer reps that aren’t scaling the way you’d like. Adjust Your Compensation Plan. Consider switching up your compensation plan if you have a product with tightening margins or if margins need to be defended. In general, compensation plans should be designed to align with your business.

Sales Recruiting 105

Sales Recruiting Sales Hiring Scale Compensation 105

SaaStr

OCTOBER 10, 2023

On a sales front, how do you evolve past founder-led sales, or together with it, so that you can scale your organization? PST, Laura Connell, Partner at Atomico, shares how to scale beyond founder-led sales on your path to Series B. Early first-hand knowledge leads to rapid fixes to the product, pricing, and packaging.

Scale 216

Scale Sales Hiring Scaling Sales 216

ChurnZero

APRIL 8, 2022

Past sessions topics have included how to: Align your organization around NRR with variable compensation strategy. Build and scale a Customer Success function from series A to C+. Lock in your seat while the prices are low. Boost team productivity by determining who owns what in the customer lifecycle. And so much more.

Customer Success 98

Customer Success Scale Leadership Compensation 98

OpenView Labs

APRIL 29, 2021

Recruiting top talent is the common denominator across all scaling startups. Prices are outrageous. Contingency firms , most commonly used for mid-level individual contributor recruiting, usually charge 25% of first-year cash compensation for their fee. This is a recap of OpenView Talent Partner Steve Melia’s workshop. .

Sales Recruiting 81

Sales Recruiting Outsourcing Services Sales Hiring Scale 81

SaaStr

NOVEMBER 2, 2019

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 Yes, it does not scale, but the beauty is the product. Krish Subramanian: I wouldn’t say that.

Scale 128

Scale SaaS Payments Sales Recruiting Payment Services 128

Neil Patel

JULY 23, 2021

It’s tempting to think of negotiation only in terms of price, but the term represents many possibilities beyond money. Improve Operations: Negotiation can help you find the right compensation package for your employees, get discounts from your manufacturers, have a successful fundraising round, and help you scale your business faster.

Pricing 144

Pricing Scale Compensation Communication 144

Neil Patel

JANUARY 10, 2021

Employees can choose to contribute a portion of their salary to the SIMPLE IRA and employers are required to either: Match employee contributions dollar for dollar up to 3% of an employee’s compensation, or Make a fixed contribution of 2% of compensation for all eligible employees, regardless of whether the employees contribute themselves.

Compensation 115

Compensation Government Investment Pricing 115

Neil Patel

SEPTEMBER 11, 2020

If you offer benefits to your employees, you need a payroll service that helps you effectively manage things like time off, vacation requests, workers’ compensation, insurance, and more. They come with specialized, custom pricing to match the unique needs of enterprise-grade companies. Built-in HR tools. Enterprise-grade solutions.

Payment Services 145

Payment Services SaaS Payments Outsourcing Services Payment Solutions 145

Tom Tunguz

SEPTEMBER 10, 2013

Price the Product Between $1k to $25k Annually to Optimize Growth. The difference in growth rates becomes more pronounced as the business scales into the $15M+ in annual revenue range where upselling companies grow more than twice as fast. Inside Sales Driven Companies Grow Fastest. Sales commission as % of ACV 9%.

Benchmarks 109

Benchmarks Startup Sales Hiring Compensation 109

ChurnZero

JUNE 10, 2020

Baxter takes readers through every step of the subscription business process – from initial start-up or testing of a new model to scaling the operation for long-term growth and sustainability to revamping your culture so everyone works together to optimize the customer lifetime value.

Customer Success 69

Customer Success Compensation Scale Customer Lifetime Value 69

OpenView Labs

NOVEMBER 30, 2021

The ‘haves’, defined by growing quickly out of the gate and then maintaining 50% or faster revenue growth at significant scale, have seen their valuations skyrocket over the years. OpenView has been tracking growth rates by ARR scale for four years running. Experiment with a usage-based pricing model. It’s a win-in.

Payment Services 80

Payment Services Benchmarks SaaS Payments Merchant Services 80

Andreessen Horowitz

OCTOBER 16, 2023

As for pricing, how do you know you’re not leaving value on the table? Speaking of, we go beyond the typical discussion of product-market fit into the concept of product-market-sales fit, and what that means for product design, to services, to pricing and packaging, to product management, and more. When should companies offer services?

Product Marketing 76

Product Marketing Scale Sales Hiring Sales Recruiting 76

OnStartups

MAY 18, 2021

Resist the temptation to create complicated compensation plans. If you reward just “deals getting done”, you’ll get deals — but at too high a price. Once your LTV is a multiple of your COCA, you’re ready to start turning the knob and scaling the business a bit (hiring more sales people). Don't say you weren't warned.

Sales Hiring 52

Sales Hiring Scale Underperforming Technical Team Startup 52

OPEXEngine

AUGUST 9, 2022

No digital tool can compensate for a lack of discipline at the front line. Record inflation, supply chain shocks, volatile energy prices, and rising interest rates have raised the risk of recession in most countries. No digital tool can compensate for a lack of discipline at the front line. Raise the game in pricing.

Scale 59

Scale VP of Engineering Payment Services Underperforming Technical Team 59

Neil Patel

FEBRUARY 7, 2021

Higher Renewal Prices: The introductory prices of Bluehost makes it one of the most affordable hosting providers. However, make sure you’re ready for a price jump when you renew your subscription. Bluehost Losses. It’s also why an uptime guarantee is important. To recap, Bluehost is better than HostGator.

Scale 137

Scale Customer Support Technical Review Social Media 137