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Dear SaaStr: When Should a SaaS Company Allow Month-to-Month Contracts vs. Requiring Annual? Nothing is a bigger headache in a Fortune 500 company that having to go back to procurement every single month to get an invoice approved. I think this is a topic where you get a lot of bad advice. Think about yourself as a consumer.
It was started in 2014 when founders Daniel and Jonathan were working together at a delivery startup and experienced firsthand how slow background checks were slowing down worker onboarding. Enhancing implementation and onboarding processes. Strengthening the pre and post-sales process ensures a better long-term solution fit.
Usio PayFac-as-a-Service Without the Drama Best for: SaaS companies that want revenue share, fast onboarding, and actual human support. Usio makes becoming a PayFac pain-free , letting SaaS platforms monetize payments without the heavy lifting. Biggest Perk: Global reach and enterprise-grade security.
A lot of you reading SaaStr are probably more B2B SaaS oriented and may not be paying attention to the consumer market, but it’s already massive and is continuing to grow quickly. In this week’s Workshop Wednesday, RevenueCat CEO Jacob Eiting and Growth Advocate David Barnard share their annual State of Subscription Apps report with us.
Whether you are a startup owner, a manager of a growing business or the CEO of an established company, you might find yourself asking questions like “ Should our SaaSsubscription model be monthly, annually or both ?” or “ What are the best tips I can get in terms of annual vs monthly subscription models ?”.
If your SaaS business’s customer base is rapidly growing, you would require a more scalable billing platform to handle high volumes of transactions for you. Getting onboard a robust billing system means benefiting from advanced features like automated recurring billing, customized invoicing, and revenue recognition.
This is pretty common in the prosumer space and especially in mobile subscription apps. And even where you don’t see 20% churn the first month with SMBs, it often lurks, because most B2B apps in SaaS don’t even get 80% of their SMBs activation the first month. This is a classic onboarding and activation problem.
Operating a business entails a number of processes like managing products and payments, invoices, customer engagement, revenue, unpaid invoices and much more. That is why most modern SaaS and subscription-based businesses have transitioned to using a good billing software, reducing their workload by a great deal.
The term SaaS platform gets tossed around a lotbut what does it actually mean, and why does it matter for today’s software companies? Whether you’re building your first product or scaling an established solution, understanding the SaaS platform model is essential for long-term growth. Contact sales What is a SaaS Platform?
Different monthly recurring billing solutions will cover different areas, so you’ll want to make sure the one you choose has all the features you need (or at least easily integrates with other software). FastSpring: All-in-One Billing Solution for SaaS. Chargebee: Supports Complex Subscription Management. Table of Contents.
Real-time claim status tracking and insurance follow-up features to prevent delayed or lost payments. Modern patient billing and collection options , including print-and-mail invoicing, online payments, mobile wallet support, and QR code-enabled statements.
BlueSnap supports payments across all geographies through multiple sales channels such as online and mobile sales, marketplaces, subscriptions, invoicepayments and manual orders through a virtual terminal. Subskribe is the adaptive quoting and billing platform for modern SaaS companies. Totally unified.
Are you a Digital River customer in emergency need of a new payment and subscription provider ASAP? FastSpring has already helped many Digital River customers make the switch , and if youre looking for a new merchant of record to help your digital business with payments and subscriptions, were here to help you, too.
Most subscription billing platforms let you: Automate invoicing and payments. Customize and manage one or more subscription and trial models. Provide a self-service portal to customers so they can manage their accounts (including payment information, seats, and more). Automated invoices and customer notifications.
Small tweaks to your SaaS billing practices can make a huge impact on the customer experience. For example, Jon Torres — a digital marketing consultant specializing in SaaS commerce — noticed that, for some of his clients, refund requests spiked around renewal time. “It 7 growth hacks from the SaaS experts. Learn more here.
You might be surprised to know that SaaS companies can learn a lot from their consumer subscription counterparts. The differences between SaaS and B2C companies. 2: Payment structure SaaS is paid on a recurring basis. But most SaaS organizations still have the luxury of long-term (2+ year) contracts.
This approach aligns incentives with customer adoption while still giving reps a meaningful upfront payout to stay motivated In a consumption-based SaaS model, you absolutely need to incentivize sales team leads on client go-lives and actual usage , not just closed-won deals. Thats a disaster for your business. using 20 out of 25 features).
Dear SaaStr: What is the average percentage of annual vs. monthly plan sold for a BtoB SaaS startup targeting the SMB market? Once the customers get large enough, and you have a brand … in the enterprise, for six figure deals … almost all will want to pay annually via invoice. 20%+- will pay annually to save money.
By Kegham Khrigian From ERP to Agile Monetization: A Roadmap for SaaS Growth For SaaS companies, staying competitive requires agility. But for many SaaS businesses, legacy ERP systems create significant obstacles. But their rigid structures and limited flexibility make them ill-suited for the demands of modern SaaS operations.
In this blog, well walk you through what ISV payment integration is, why it matters, and how to do it rightso you can turn your platform into a powerful growth engine for both you and your customers. This involves: Merchant onboarding: Collecting business details and verifying accounts so your users can start accepting payments.
For example, for a roofing contractor company, the software would act as the master merchant, setting up the infrastructure for contractors (sub-merchants) to receive payments from customers. This model allows sub-merchants to focus on their core activities while benefiting from streamlined access to payment services.
Fee structures matter; understand the differences between interchange plus, flat rate, tiered, and subscription pricing to find the most transparent and cost-effective option. Credit card merchant services are the systems, tools, and agreements that allow businesses to accept payments via credit and debit cards.
Subscription models offer companies large and small the opportunity to build predictable revenue and high customer lifetime value. But managing subscriptions effectively and freeing up time and resources for expansion is no picnic. In a subscription business model, customers pay a recurring fee in exchange for a product or service.
Chargebee is a robust subscription management platform. However, there are certain aspects of collecting recurringpayments that you would still be responsible for when using Chargebee, such as: Connecting to payment gateways manually. Zoho Subscriptions. Remitting taxes at the end of the year.
Companies can capitalize on: Subscription-based integrations , where users pay extra for advanced functionalities. You can also manage one-time or recurringpayments and create professional customizable invoices. If your customers pay online, you can build hosted payment pages.
SaaS has revolutionized how we work, but let’s be honest, managing all those subscriptions can feel like juggling flaming torches. You’re dealing with contracts, security concerns, and costs that seem to spiral out of control. This blog is your guide to conquering SaaS chaos. It’s about sanity.
The best SaaS companies Lightspeed has seen in their portfolio are maniacal about defining these key metrics and tracking them with specific targets in mind on a consistent basis. Invest Heavily in Onboarding Your typical employee takes about three to six months to get ramped. They might even take a year to really hit their stride.
The no-code platform empowers non-technical teams to track and analyze product usage, and publish beautiful in-app onboarding tours, announcements, and surveys, in minutes. With our platforms, SaaS companies can manage any subscription model, calculate revenue, and generate custom reports that investors love.
For example, say a user opens your app, skips the onboarding tutorial , and heads straight to the dashboard. Because now, you can: Improve onboarding by identifying friction points. Such as signing up, completing onboarding, using a core feature for the first time, or upgrading a plan. What features drive repeat usage ?
Let’s be honest, onboarding in SaaS can feel like navigating a labyrinth. As product managers and onboarding specialists, you’re juggling a million priorities: feature adoption, activation milestones, reducing churn… And crafting the perfect email sequence that guides users to success? What are they?
Subscription pricing with the help of automated billing software has transformed many industries and provided businesses with a dynamic way to generate revenue, especially in the SaaS space. SaaS companies’ success is largely dependent on their use of subscription billing.
This article goes beyond the buzz to show how AI is already driving results in SaaS, finance, retail, and operations, with lessons and case examples that any executive can learn from. Typical business applications include: Back-Office Automation: AP/AR processing, invoicing, and HR onboarding can be fully automated.
We don’t have to look far to find examples of B2B SaaS companies that have found traction using a self-service or product-led motion. Look at Zoom or Slack: businesses designed for enterprise organizations that use B2C-like onboarding flows (such as product-led growth, or PLG) to fuel interest and adoption. Prepare to Be Iterative.
Choosing the right payment gateway is a crucial decision for any SaaS (Software as a Service) business or ISV. With so many options available, it can be overwhelming to decide which payment gateway best suits your needs. Security : Protection against fraud and ensuring data privacy is paramount. That’s right!
The SaaS industry has seen explosive growth in the past decadeand this is expected to continue this year. Join the payments-led growth movement Sign up to keep up-to-date with the latest trends in payments, vertical SaaS, and technology from industry experts. Customer lifetime value. Customer acquisition cost.
You may already know that you need a SaaS management platform to help you automate user lifecycle management , ease Google Workspace administration, or provide the SaaS data and file governance for a secureSaaS stack. What is SaaS spend management for IT? n "errors": [n {n "message": "Domain user limit reached.",n
Here’s an interesting stat: 70% of businesses consider subscription and membership models indispensable for future commercial growth and expansion. Software-as-a-service (SaaS) businesses need to constantly evolve their offerings to stay fresh and relevant. How do you add payment processing capabilities to your software?
That said, industry experts agree that your SaaS companys goal churn should be below 2%. As a SaaS business leader, reducing software user churn is an important part of maintaining your customer base and increasing revenue. TL;DR The average software industry churn rate is 14%, but SaaS companies should aim for under 2%.
So read on, and hopefully, your SaaS sales journey will be less about trial and error and more about steady progress toward success. PLG-first SaaS companies rely on their product as the primary way to engage customers, making self-service sales a natural fit for conversion after experiencing the product.
This is especially true now more than ever before as Software-as-a-Service (SaaS) solutions continue to be amongst the fastest-growing segment within the tech world. Consumer adoption of digital solutions is accelerating at a rapid pace, with the SaaS market projected to grow from $315 billion in 2025 to $1,131 billion in 2032.
Factors to consider when choosing an international payment gateway. FastSpring: Merchant of Record for global SaaS companies. 9 other international payment gateways for SaaS and non-SaaS businesses. Related: International RecurringPayments (How We Handle It for You). Easy to access self-serve portal.
Personalized offers and discounts can then be extended to these customers to get them onboard. How is Revenue Growth Management Relevant to SaaS? Our discussion of the RGM model above is highly relevant to the SaaS industry as well. Subscriptions are a great way for businesses to generate stable revenue streams.
What does customer satisfaction look like for SaaS businesses? Unlike traditional businesses, most SaaS businesses operate the subscription pricing model. As a result, satisfying customers is key to any success in SaaS. SaaS customers expect your continued support if they’re to remain your loyal customers.
The old world SaaS model was basically all about sign up and convert. The new SaaS model is subscription revenue-driven, which begs the question: what is a conversion today? It’s not just SaaS; subscriptions are taking over. This is what we’ve ended up in: a world of subscription everything.
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