Tom Tunguz

FEBRUARY 26, 2025

They prioritize revenue growth, market share and profit maximization differently. Maximization (Revenue Growth) - maximize revenue growth in the short term. Many mid-market software companies price with the goal of revenue maximization, negotiating for the highest possible price in each sale. AWS, Twilio, Heroku, etc.

SaaS Payments 277

SaaS Payments Pricing Strategy Scale 277

SaaStr

MARCH 31, 2022

And if you also look at the platform as a service category, that’s also an additional $50 billion of spend, and that’s typically with those same vendors. And it’s one of the three large cloud vendors that we all know: Microsoft, AWS, and Google. AWS’s marketplace has seen 1.5

Scale 259

Scale Marketplace as a Service Cloud SaaS Payments 259

Tom Tunguz

NOVEMBER 4, 2014

AWS, Twilio, Heroku, etc. If there are a small number of relevant customers, as in Veeva’s case where the entire market is about 200 pharmaceutical companies, the average revenue per customer must be very high. This keeps morale high and creates a very predictable revenue forecast.

Pricing 118

Pricing Startup SaaS Payments Payment Methods 118

OpenView Labs

MARCH 16, 2021

The usage-based pricing model almost feels like a cheat code —it enables SaaS companies to more efficiently acquire new customers, grow with those customers as they’re successful, and keep those customers on the platform. It more closely aligns payment with a customer’s consumption, thereby impacting cash flow and revenue recognition.

Pricing 52

Pricing Payments SaaS Payments Payment Solutions 52

OPEXEngine

JANUARY 11, 2022

There are many vendor benefits, too — it is easier to sell and it embodies a customer success solution orientation that drives high customer lifetime value and revenue. These contracts are very common in ‘revenue share’ models (i.e., Less predictable revenue. Pay for performance compensation plan. Four pricing models.

Pricing 52

Pricing Payment Solutions Outsourced Development Compensation 52

ProfitWell

SEPTEMBER 25, 2019

One of the most famous lines from Citizen Kane is, “It's no trick to make an awful lot of money, if that's all you want is to do is make a lot of money.” That’s never been truer for software businesses in particular than in the past 10-15 years, with the internet stimulating an explosion in the number of viable revenue models.

Payments 40

Payments Revenue Payment Methods SaaS Payments 40

ChurnZero

OCTOBER 16, 2020

They sit down and start scribbling down payments and interest rates in a two-by-two square. Why would we replicate that awful and uncomfortable experience we have in the B2C world with our B2B buyers? When a customer engages with your platform, they have a vision and an expectation of what they’ll achieve,” says Amanda.

Scale 98

Scale Customer Success SaaS Payments Sales 98