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Dear SaaStr: When Should a SaaS Company Allow Month-to-Month Contracts vs. Requiring Annual?

SaaStr

Annual contracts combined with prepaid cash are a huge benefit, when done right: You get all the cash up-front (this is how I went cash-flow positive in fact) — IF you can collect it a timely fashion; and Your churn almost by definition goes down, at least nominal churn. And that includes pricing.

SaaS 258
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A Look Back at Q1 '25 Public Cloud Software Earnings

Clouded Judgement

This matters a lot more when stock prices are going down, and management teams often grant additional shares to make employees whole (thus increasing dilution even more) Net Revenue Retention High net revenue retention is the fourth aspect of a successful quarter, and one of my favorite metrics to evaluate in private SaaS companies.

Cloud 277
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SaaS Platform Explainer: Definition, Examples, and How to Grow in the Software as a Service Industry

Stax

Refine your pricing strategy over time Pricing isn’t a one-and-done decisionit’s a growth lever that evolves with your product, customer segments, and market conditions. Pricing is a living strategytest, iterate, and align it with your customer’s success.

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Top 10 Learnings On What Getting Acquired is Really Like From Ex-Head of M&A at Own, Rackspace, NetApp and Yahoo!

SaaStr

It definitely happens. You Can Push Back On Price Once or Twice — But That’s About It The first offer is rarely the top offer. The Price Won’t Be Great, But Just Do It. The price may be low, the terms may be rough. If you say No to a good deal, how often do they come back later? I’ve seen it.

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The Definitive Guide to Embedded Analytics

The Definitive Guide to Embedded Analytics is designed to answer any and all questions you have about the topic. Access the Definitive Guide for a one-stop-shop for planning your application’s future in data. Every application provider has the same goals: to help their users work more efficiently, and to drive user adoption.

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The Inflationary Forces in Startupland

Tom Tunguz

While not as hyperbolic an inflation rate as copper or lumber, the price trajectory of early stage cloud startups does result from a similar supply demand/imbalance. 3 of the years saw declining prices. Perhaps these prices are tied to blockbuster IPO markets. Pricing rounds on multiples like public market investing.

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Monthly Recurring Revenue (MRR): Definitions, Formulas And How To Improve It

Stax

Upselling is when you offer customers a higher-priced product or service, while cross-selling is for an additional product or service. Just make sure you truly add value for your existing customers and focus on customers with a higher LTV.