article thumbnail

Consumption-based pricing models: transition guidance for CFOs

OPEXEngine

Consumption-based pricing is best used when you can accurately and easily break down your service offering into small, digestible units. Many companies in the technology industry are moving toward “pay for what you use” consumption-based pricing models. Four pricing models. Uncommitted contracts. Challenges and shifts.

Pricing 52
article thumbnail

How is low/mid-ticket sales different from enterprise sales?

SaaStr

Expect much higher compensation / OTE in general, and often a large draw until their first deal closes. SMB sales: Reps generally are given 100+ leads a month from marketing / demand gen. Generally need to close 8–12 deals a month for larger SMB deals , more for small deals (>10x more than an enterprise rep). In the middle.

Insiders

Sign Up for our Newsletter

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

article thumbnail

4 Traits of Fast-growing SaaS Companies

OpenView Labs

Usage-based pricing (UBP) , also known as consumption-based pricing, allows customers to pay for products according to how much they use. In 2021, we saw that fast growers were nearly 3x as likely to use a largely usage-based pricing model versus slow-growing peers.

article thumbnail

The SaaS Executive’s Guide To Building A Winning Go-To Market Strategy

Sales Hacker

The SMB segment—going upstream vs. downstream. Pro-user, SMB, Enterprise, this requires a specific Go To Market strategy. When we map the number of deals committed against a listed price (ACV), you will notice deals starting to segment around discount levels. The SMB Segment: Going Upstream vs. Downstream.

SMB 72
article thumbnail

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

SaaStr

How does Krish think about purely serving the SMB market? How does he think about the mortality rate of SMBs? How does Krish think your customer acquisition and GTM strategy has to change with the movement from SMB to enterprise? That’s in a case when pricing is successful. Does one have to move to enterprise?

Scale 128
article thumbnail

Snowflake, CrowdStike and SumoLogic: “How to Leverage the Cloud Giants to Scale to 100 Million ARR and Beyond”

SaaStr

So I think just opening your aperture when you’re thinking about marketplace, not assuming it’s just a small commercial SMB market sales. And I think some folks sort of asked, “Did you have to change your product to get on the marketplace or your pricing?” So it’s not just a corporate top down initiative.

Scale 203
article thumbnail

How to Find Product-Market-Sales Fit

Andreessen Horowitz

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?