Baremetrics

JULY 28, 2019

Pricing can be one of the most overwhelming and puzzling parts of business. SaaS businesses, in particular, have a unique challenge with pricing for a few reasons: There’s an almost infinite number of different ways to price a SaaS product. Pricing Strategies: The way your pricing model is presented and marketed.

Pricing 101

Pricing Strategy SaaS Scale 101

Cobloom

MAY 6, 2019

Few things impact revenue as much as your pricing. And yet, the average SaaS startup spends just six hours on their pricing strategy. It's understandable - with such an overwhelming number of pricing models, strategies and tactics available, it's almost impossible to know where to start.

Pricing 109

Pricing Strategy SaaS Startup 109

ProfitWell

SEPTEMBER 24, 2019

Every SaaS company might be different—but almost every single one makes the same mistake that puts the company in jeopardy: it doesn't understand its pricing. Yet most SaaS companies don’t know what they’re worth to their customers or how best to communicate value. How is SaaS pricing different?

Pricing 64

Pricing SaaS Payments Strategy Payments 64

SaaStr

APRIL 19, 2024

How do you reverse-engineer your first million as a SaaS startup founder? You Need A Business Model with Economies of Scale As you’re trying to reverse engineer whether your business model makes sense, you have to look at your business model. Certain business models have economies of scale, and some don’t.

Engineering 236

Engineering Business Model Pricing Scaling 236

SaaStr

APRIL 17, 2024

But now a second SaaS security leader has filed to IPO, Rubrik. They’re still transitioning from onprem / appliciance model to cloud, which makes some of the metrics a touch confusing. Is this the new bar to IPO in SaaS? Let’s great ready for just the second SaaS IPO since 2021! 500m+ ARR, with ~50% growth?

Scale 220

Scale Pricing Scaling Cloud 220

SaaStr

MARCH 8, 2024

With everything in AI moving so rapidly, what’s the best way to price Artificial Intelligence products or SaaS tools with custom AI features and integrations? So we asked the expert, Sandhya Hegde, General Partner at Unusual Ventures to share her best practices and trends for pricing and packaging AI products. ROI is unproven.

AI 188

AI Artificial Intelligence Pricing SaaS 188

Cobloom

APRIL 14, 2020

With big-name SaaS companies like Slack and Evernote using the freemium pricing model to achieve rapid growth and attract an ever-expanding user base, it’s easy to think that freemium is the secret to success in the ultra-competitive SaaS space.

Pricing 59

Pricing SaaS 59

SaaStr

APRIL 10, 2024

So I’ve been doing SaaS long enough to remember when Dropbox was a super hot SaaS startup. Many in SaaS have found a way to drive their ACV and ARPU up over the past 18-24 months with price increases, more products, and more. On Track for Almost $1 Billion in Free Cash Flow in Fiscal 2024 Yes, SaaS models can.

Scale 215

Scale Churn Scaling Pricing 215

Inturact

NOVEMBER 28, 2022

Your SaaS pricing tells the story of your value, and should communicate that value in a way that actually attracts customers. Every SaaS founder worries if their pricing is right, and with good reason. Your SaaS pricing should justify your product and yet be affordable.

Pricing 57

Pricing SaaS Communication B2B 57

SaaStr

SEPTEMBER 19, 2023

Many of the fundamental business models that were once engraved in the SaaS playbook are now changing thanks to a tougher macro environment and a maturing market. PST, Stephanie Opdam, Partner at Notion Capital, shares four business model changes that will allow SaaS companies to build resilience and staying power over time.

Business Model 238

Business Model SaaS Payments Payments Headcount 238

SaaS Metrics

FEBRUARY 7, 2023

Trying to find the proper balance of valuation and income is critical for your SaaS business.

Pricing 40

Pricing Strategy SaaS Metrics 40

SaaS Metrics

JULY 16, 2019

Introduction Businesses, whether small or big, choose SaaS over traditional software delivery methods mainly because of low initial costs and the flexibility SaaS model offers. Regardless of the pricing model you choose, you should be able to.

Pricing 45

Pricing Software Delivery Strategy SaaS 45

USIO

JANUARY 15, 2024

Subscription Models: Usio will provide general insights into why subscription-based payment processing is often considered advantageous for Software as a Service (SaaS) businesses. Predictable Revenue Streams: Subscription models provide a consistent and predictable revenue stream for SaaS companies.

SaaS Payments 130

SaaS Payments Payment Services Payments Payment Solutions 130

Incredo

JULY 31, 2019

SaaS (Software as a Service) has proven to be a very elastic, scalable and progressive industry. billion (the biggest share belongs to SaaS). Another research firm, Gartner Group says that SaaS industry remains the largest segment of the cloud market. According to IDC , cloud services market grew 28.6

SaaS 195

SaaS Pricing Cloud Revenue 195

SaaStr

DECEMBER 29, 2023

In part one of this week’s Ask-Me-Anything (AMA) with SaaStr founder and CEO Jason Lemkin, he answered the community’s questions about whether all anyone cares about is AI anymore, investor appetites going into 2024, vertical SaaS, and thriving as a solo founder. The multiples fell off a cliff in 2022 for SaaS and remained crummy in 2023.

Scale 221

Scale Sales Hiring Customer Success AI 221

SaaStr

OCTOBER 18, 2023

So Domo is an interesting case study on SaaS entrepreneurship. Founder Josh James had one of the earliest $1B+ exits in SaaS when Adobe bought his first start-up, Omniture, for $1.8 After decades running SaaS companies, it was time for a break in 2022, and Josh eventually stepped down as CEO. Billion way back in 2008.

Entrepreneurship 231

Entrepreneurship Enterprise Pricing Churn 231

SaaStr

SEPTEMBER 12, 2023

A SaaS Founder’s Guide to PR Why PR works, when it doesn’t, and what to expect. Customer success teams are critical for SaaS companies as they own the customer relationship from start to finish, managing up to 75% of revenue through renewals and upsells. Competition In SaaS Leads to A Lot of Things. Or they fail.

Sales Hiring 219

Sales Hiring Technical Advisors Compensation Outsourced Development 219

SaaStr

DECEMBER 6, 2023

SaaStr founder and CEO Jason Lemkin chats with Box CEO and Co-Founder Aaron Levie to talk about what’s new at Box, SaaS fatigue, hiring a new COO, operating margins and efficiency, the future of AI, and what to expect for 2024. Eventually, you have to transition to a more sustainable, long-term model of growth.

AI 201

AI Sales Hiring Scale Artificial Intelligence 201

SaaStr

SEPTEMBER 20, 2023

So Harry Stebbings was kind enough to have us back in the new group format on 20VC with 2 of the legends in seed investing, Eric Paley of Founder Collective and Mike Maples of Floodgate: While both aren’t pure SaaS investors, they’re both in the top 1% (!), In Today’s Episode on Is the Venture Model Broken? : ” New!!

Venture Capital 226

Venture Capital Investment Pricing Startup 226

Stax

APRIL 18, 2024

Independent Software Vendors (ISVs) and Software-as-a-Service Providers (SaaS) operate within the same market, thus creating a push-and-pull revenue dynamic. SaaS companies deliver software applications over the internet on a subscription basis, simplifying access and management for users. What are SaaS companies?

Outsourcing Services 88

Outsourcing Services SaaS Payments Payment Services Payment Methods 88

SaaStr

AUGUST 23, 2023

Dear SaaStr: How Do You Price a SaaS Product in a New B2B Market? The simplest answer is usually to copy the pricing from the closest public company or other break-out leader you can find that is vaguely similar. I guessed the pricing almost immediately. That everyone knows, and knows the price points of.

Pricing 189

Pricing B2B Scale SaaS 189

Chargebee

MAY 11, 2023

Three years since subscription pricing returned to the SaaS growth folklore, the world has changed. So has its pricing trends.

Pricing 52

Pricing SaaS Subscription Payment Features 52

SaaStr

OCTOBER 11, 2023

One SaaS leader that’s accelerating again is Shopify. From a business model perspective, Shopify has in essence been a fintech and merchant product first and a SaaS product second for quite some time. Pricing Increases Really Boosted MRR. Like Most Other SaaS Leaders, Shopify Has Gotten a Lot More Efficient.

Payments 231

Payments Merchant Services Payment Solutions Revenue 231

Clouded Judgement

MARCH 22, 2024

Subscribe now ARR (Annual Recurring Revenue) vs ERR (Experimental Runrate Revenue) ARR (Annual Recurring Revenue) is one of the most popular SaaS (Non-GAAP) metrics. In it's truest form, ARR is used by pure SaaS business models to describe the aggregate annual value of the entire customer set. This analysis does two things.

AI 183

AI Revenue Cloud Technical Advisors 183

SaaStr

SEPTEMBER 19, 2023

So I’ve been doing SaaS for a while, and the costs of doing business have just gone up. SaaS sales execs with even a little bit of experience at other SaaS companies are looking for higher and higher OTEs, often with lower effective attainment and high support costs. seems to have priced itself out of doing SMB SaaS sales.

SMB 260

SMB Scale Sales Hiring Sales 260

SaaStr

APRIL 23, 2024

Like many SaaS startups, Databricks had a big vision from the beginning, when people believed that no one cared about a unified data platform. They achieved product market fit with data engineers who thought it was a better product from a price and performance standpoint. They’re fulfilling their vision of a unified data platform.

Technical Review 221

Technical Review Government Innovation Engineering 221

Andreessen Horowitz

MARCH 22, 2024

We’re in the very early days of genAI and until adoption curves and costs stabilize, there won’t be any tried-and-true pricing or packaging frameworks. We’ve also seen some companies use their genAI feature as an upsell lever to increase conversion to a higher pricing tier or cover part of the cost of serving genAI.

Generative AI 125

Generative AI AI B2B Pricing 125

FastSpring

MAY 25, 2023

FastSpring previously presented on SaaS fees pricing and packaging to combat stagflation in 2022, but this article is based on an updated presentation delivered in March 2023 by David Vogelpohl. This article offers tips for optimizing pricing and packaging of your SaaS products in a less-than-stellar economy: What is stagflation?

SaaS Payments 140

SaaS Payments Pricing Payments Merchant Services 140

SaaStr

DECEMBER 9, 2022

No pressure, but the pricing model you choose can make or break your SaaS business. Fortunately, other successful SaaS leaders have experience with this challenge. The Payhawk Pricing Journey. Borisov says, “The final thing we decided to take into account is really a triangle called trade-off on pricing.

Data 185

Data Pricing Marketing Acquisition 185

Tom Tunguz

MARCH 16, 2022

Is charging by consumption (usage-based pricing) a superior model for a business? Often, the effort probably isn’t worth it, unless the company’s stated strategy is to differentiate on price structure. What should my unit of pricing be? The unit of pricing is the crux to unlocking that puzzle.

Pricing 264

Pricing Scale Banking Startup 264

Stax

FEBRUARY 28, 2024

Here’s an interesting stat: 70% of businesses consider subscription and membership models indispensable for future commercial growth and expansion. However, only 10% of them currently employ these models. Software-as-a-service (SaaS) businesses need to constantly evolve their offerings to stay fresh and relevant.

Payments 88

Payments SaaS Payments Payment Services Merchant Services 88

Clouded Judgement

DECEMBER 1, 2023

When it comes to foundation models, outside vendors like Anthropic, AI21 Labs, Cohere, Meta Llama, Stability as well as Amazon’s Titan models are all available on Bedrock. Amazon was clear in their beliefs that there won’t be “one model to rule them all” and instead users will embrace choice.

AWS 293

AWS Cloud AI Search Cost optimization & reporting 293

SaaStr

MAY 12, 2022

Offering its services as a freemium-based model, CircleCI recognizes driving trials as the cornerstone of a go-to-market strategy for any developer tool. . Jim Rose, CEO of CircleCI, leverages his experience marketing to software developers to discuss the merits of moving from a subscription-based to a usage-based business model.

Scale 229

Scale Payments SaaS Payments Payment Services 229

Subscription Flow

FEBRUARY 27, 2024

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. Moreover, developing a profitable pricing strategy requires consistent model testing and compliance with international tax laws.

SaaS Payments 95

SaaS Payments Payment Services Payments Payment Solutions 95

SaaStr

DECEMBER 4, 2023

Churn increase due to greater scrutiny of costs Contract values declining More stakeholders involved in decision-making Capchase combined the study with their data set of thousands of SaaS companies and looked at what the best companies do to overcome these hurdles. It could be price, product composition, or payment terms. The answer?

SaaS Payments 208

SaaS Payments Payment Services Payments Payment Features 208

SaaStr

DECEMBER 17, 2021

Pricing is one of the most challenging elements to get right for SaaS companies. How much should you charge, and what pricing model works best? In an era of empowered buyers, vendors should take care to remove obstacles from the pricing process or risk losing the customer to a competitor.

Pricing 196

Pricing Scale Retention AI 196

Upscope

NOVEMBER 14, 2018

See all the dumb things we did with our b2b SaaS pricing and the “obvious” pricing model that worked, doubled revenue and made us profitable. Don't add any price to enterprise plans because each enterprise deal varies too much and may take far more work than expected.

Pricing 40

Pricing Revenue B2B SaaS 40