article thumbnail

The Complete Guide to SaaS Pricing Strategy

Tom Tunguz

Penetration (Market Share) - price the product at a low price to win dominant market share. Price low to minimize adoption friction, grow quickly, and then move up-market after developing broad adoption. Penetration prioritizes market share. A bottoms-up strategy lends itself to penetration pricing.

article thumbnail

A16Z: The Median Enterprise AI Startup now Hits $2.1M ARR by Month 12

SaaStr

ARR (already doubling the old “best in class” annual benchmark) Median : $700K ARR Bottom quartile : $500K ARR The top performers are starting to pull away significantly, suggesting they’ve cracked something fundamental about product-market fit that others haven’t. By month 6: Top quartile : $2.0M

Insiders

Sign Up for our Newsletter

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

article thumbnail

How Windsurf / Codeium Built a Billion-Dollar AI Company and a Winning Sales Machine

SaaStr

Their product is generating an impressive 45% of developers’ code on average. Beyond their code assistant, they’ve developed Windsurf AI, an agentic IDE allowing non-technical users to build applications – accelerating productivity even further.

article thumbnail

The Early Days: 5 Things Vanta Got Right, And 5 It Got Wrong, Getting to First $10m ARR

SaaStr

” This approach gave them insights no amount of customer development interviews could provide. More importantly, customers on annual contracts used Vanta continuously rather than just for audit preparation, fundamentally changing how they thought about the product. Would you use it? Would you pay for it?”

article thumbnail

Transitioning from Sales-Led to Product-Led Growth and Scaling to $100M ARR With Apollo’s CEO Tim Zheng

SaaStr

This inefficiency stemmed from the high costs associated with maintaining sales development representatives (SDRs), customer success managers (CSMs), and account executives. Implementation of Product-Led Growth The transition to product-led growth (PLG) required understanding and implementing a fundamentally different business model.

article thumbnail

How We Scaled OpenAI’s Sales Team from 10 to 500 People in 2 Years: The Inside Playbook from ChatGPT Enterprise’s GTM Leader Maggie Hott

SaaStr

The “Logo Trap” Kills More Startups Than Bad Product-Market Fit Don’t confuse big company brands with startup readiness. Yet most companies underinvest in manager development. Overinvest in their leadership development, executive coaching, and emotional intelligence training.

article thumbnail

SaaS sales for startup leaders

Chart Mogul

Its not just about knowing who your customers areits about having clear hypotheses that you can test on your journey to find product-market fit. Ideal customer profile (ICP) This involves identifying the key characteristics of the businesses or individuals your product is built for. Here are the basics you need to get started.