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One of the hottest topics in AI for B2B is around outcome-based pricing. Simply that outcome based pricing may be exciting to VCs who think it unlocks more TAM and budget, and it may seem exciting to founders and execs who think it will help them grow deal size. What I do know is a pricing model is not a product.
This has massive implications for B2B SaaS. When smart founders ask nuanced questions about their specific situations, the personalized responses create what Simon calls “magic moments” – something increasingly rare in traditional B2B SaaS. The same rules of B2B SaaS continue to apply.
Pricing and Monetization The industry hasn’t yet settled on a dominant pricing model for AI capabilities, making this an area of ongoing experimentation. The post 5 Things That Are Actually Working and 5 Things That Arent in B2B SaaS AI with Ironclad’s CEO and a16z appeared first on SaaStr.
50 cents of compute for 500 dollars of value — Sam Altman (@sama) February 3, 2025 So just how much will AI remake classic B2B software? There have been so many price increases since 2021, many apps are 40% or more expensive than they were in 2021. To raise prices even more? On top of a fairly expensive base price.
Download ZoomInfo’s latest data-driven eBook aimed to help marketing leaders understand the best practices around choosing a B2B contact data provider. This buyers guide will cover: Review of important terminology, metrics, and pricing models related to database management projects.
AI SDRs have taken off more quickly than AI AEs (although personally, I suspect more value will be in AI SEs and AEs that can answer my deep product and pricing questions instantly, without games). Tons of B2B companies deploying AI SDRs already, but few deals closed so far. But what about the more personal sales side?
8: 3x Net Dollar Retention Thanks to This Pricing Model Over time, the dominant pricing structure in B2C and B2B applications is like the cell phone plan. You get a base number of minutes for a particular price. You might buy 500 extra minutes at a cent per minute. You pay an additional 2.5 Now, it’s about 120%.
By BluLogix Team Complex Pricing Models: How BluLogix Simplifies UCaaS Monetization Summary: Managing complex pricing models is a major pain point for UCaaS companies. From seat-based pricing to consumption-based and hybrid models, keeping track of various offerings and ensuring transparency for customers can be challenging.
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.
This guide is designed to help today’s B2B sales leaders ramp up their effectiveness in any economic environment. You’ll get a deep dive on: Proven methods for warming up cold calls Coaching points for responding to price pressure early and often Front-line examples of how to win the battle for customer retention
AI in B2B SaaS: The Incumbent Advantage On the AI revolution in B2B software, it’s the age-old ‘startups are innovating and racing to get distribution, and the bigger companies have distribution and are racing to innovate.’ “We had the best board meeting we’ve ever had,” according to Brian.
With the rise of “Product Led Growth” as such a key concept in SaaS, it brings up an age-old question in business software: Should all pricing be transparent? Can you even have a mostly self-service motion in PLG with “Contact Me” in your pricing? It’s a mix.
Q: What billing or pricing tactic have you found in the end just wasn’t worth it? “Unless your product has a huge TAM to cast your net in, no-touch onboarding, and an obvious first “wow” moment you’re trying to reach, free trials and/or freemium pricing does not work well.” Jason, ed. : Jason, ed. :
And only 1/3 of these have an exit for 3x-10x the price of the last round, i.e. enough for anyone to make any money. 5 is fast in SaaS and B2B. The post What Are The Odds You Get Acquired Within 5 Years for a Good Price? What’s less clear is how many were acqui-hires or acquisitions for a very small amount. Around 1%-1.5%
The event is strategically designed to facilitate 1000s of meaningful connections through 1000+ on-site “Who Do You Want To Meet” dedicated 1-on-1s for B2B founders and execs (no service providers, sorry!) VIP Networking app for B2B founders and execs attending (no service providers, sorry!)
The deep dive here: And G2’s summary here: In a deeply insightful G2 Reach panel, SaaStr CEO Jason Lemkin moderated an engaging discussion on the current B2B SaaS investing landscape and what we can expect in the years ahead. Deals aren’t any better or easier to get done, but some optimism is back.
How to Leverage Pricing and Packaging to Drive Revenue with Miro, Loom, OpenAI, and Splunk #3. 5 Things That Are Working and 5 Things That Arent in B2B SaaS AI with Ironclad’s CEO and a16z #4. What It Really Takes to Sell To Developers and Engineers with Komodor CRO Jim Hunnewell #5. appeared first on SaaStr.
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.
Q: What would a good Sales Comp Plan for a B2B SaaS Company with ACV ~$1,200 / ARPU ~$100 look like? This is a pretty low price point for a sales-driven SaaS model, but it can be done. The post Dear SaaStr: What Would a Good Sales Comp Plan for a B2B SaaS Company with ACV ~$1,200 look like? That’s 25–50 calls a day.
Billion, a 20x-25x ARR exit and a huge, huge price in absolute terms. Still, somewhat a crazy world where you can see your B2B AI company for $2.8 So the headline is incredibly impressive. AI Support / Agent leader Moveworks at $100m+ ARR sells to ServiceNow for $2.85 Its ServiceNows largest acquisition ever. A huge exit.
AI is already reshaping B2B SaaS, and its only going to accelerate. AI Will Deflate Pricing in Some Areas AI is making some categories of software look expensive. And everyone I work closely with in B2B with a large AI cost base (Gorgias, Opus Pro, etc) has already figured out how to be smarter and bring costs down 80% or more. #6.
Predictable flat rate pricing model with no cross border fees. Extensive B2C and B2B Selling Features Sell in all the ways that customers want to buy. We support these flexible selling models and options with both best-in-class self-serve checkout functionality and localized, custom B2B quotes and invoicing.
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 generally see B2B and prosumer genAI features fall into 3 buckets: as a core offering , as part of an upgrade tier, or as an add-on. Packaging: core, upgrade, or add-on?
So Emergence Capital put together a great report here on B2B startups, “Beyond Benchmarks 2024” , with a ton of great data across 664 software startups. One piece I loved is how 2023 growth rates compared to 2022 for Top Quartile Software Startups. Top quartile still are growing 38% — but the bottom are shrinking at -7%.
They use AI for price discoverability and optimization, with a setup that drives annual retention. This represents an under-recognized opportunity for B2B AI startups focusing on compliance, risk management, and administrative controls. Large enterprises have an immediate need for governance solutions to handle AI at scale.
So there are two massively different vibes in B2B and Cloud and SaaS today: Folks fighting to keep slowing growth going. Here, we see threats when customer attempt to cancel, big price increases every year, and renewal managers trying to force customers to buy extra seats they don’t need. How many AI-first tools are Freemium?
Pricing “cheap” won’t get prospects to come find you, not usually. They matter in B2B and SaaS as much or even more than anywhere. And raise pricing further. So lower pricing can work. More here: The 3 Types of Day 1 Pricing: Low End of Normal. brand, once you have the prospect in your funnel.
The most common examples of successful CRO tactics provided at many conferences tend to focus on B2C ecommerce, but what are the proven winning tactics you can use in your B2B CRO strategy? In this episode of Growth Stage, we interview Sahil Patel of Spiralyze about his thoughts on: Special considerations for B2B CRO. Jump to video.
Product-led growth (PLG) is the consumerization of software—a strategy B2B software companies can learn from growth teams at successful consumer tech companies. . He advises bringing these features to a B2B growth team and then shares mistakes that B2B companies make while adding go-to-market (GTM) to PLG.
When demand exceeds supply, prices increase. And we know from a previous analysis that the public markets price high growth B2B companies at more aggressive prices than the private markets. And prices of all exits (IPOs, buyouts, and M&A) have all increased with IPOs seeing the most appreciation. Check check.
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. Are you still making assumptions about your B2B go-to-market motion — assumptions that ignore B2C selling methods — that are limiting your growth potential? How B2B and B2C Are Converging.
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. So, let’s look at the state of subscription apps and how B2B SaaS can learn from it. In B2B, the classic metric for this is 2% now and was 2% in 2006.
Dear SaaStr: If you were hiring a head of sales for a high-priced, niche B2B SaaS product, would you focus on general B2B SaaS sales experience or on market/customer knowledge, assuming it will be very difficult to find a candidate with both? This is the scenario when the trade-off is the most acute. See who does better.
According to an OpenView survey, by 2023, 56% of SaaS companies will be using or expecting to test usage-based pricing, which they define as “a pricing model that enables customers to pay for a product according to how much they use it.”. Seat-based pricing (SBP) is a usage-based metric. SaaS pricing is tough to optimize.
Pricing : Userpilot offers flexible plans tailored to startups and mid-sized SaaS businesses, with pricing starting at $249 per month for the basic plan. Pricing : Qualaroo offers a free forever plan with all features included for startups and small businesses for up to 50 monthly responses.
New consumption pricing model has increased revenue 15% where rolled out. Done right, this sort of anti-SaaS pricing model can lead to significantly more revenue. I’ve seen this across other B2B/API companies I’ve invested in. If New Relic makes this work, it will be a great case study.
By BluLogix Team Why Consumption-Based Pricing Drives Higher Customer Retention Introduction One of the biggest challenges in subscription-based businesses is churn. Consumption-based pricing solves this by ensuring customers pay only for what they use, improving satisfaction and retention.
A lot of our SaaS older times don’t quite know what to make with a lot of B2B startups these days, let alone some public SaaS companies. We could have picked many B2D services, like Twilio or others, too, which have primarily or substantial transaction pricing too. Doesn’t ARR stand for Annual Recurring Revenue?
Pricing typically requires replacing a small number with a bigger one.” Pricing was a constant theme and generally delivered the fastest path to impact — although often the hardest from a change management standpoint. Start with a thought experiment: “If we raise prices 10%, what would the impact on win rates be? A lack of data.
The #1 reason is it’s the best reason to help influence and close pipeline So most B2B vendor events will stay around that time. No complaints on pricing if you buy last minute! As well as many other super cool events, from The All In Conference to Acquired podcast’s cool SF event. As low as $549 (!) And bring your whole team!!
By Inga Broerman How Usage-Based Pricing is Transforming Subscription Billing The subscription economy is undergoing a transformation, driven by the rising popularity of usage-based pricing. Schedule a Demo Today The Shift to Usage-Based Pricing Its an inevitable now. It doesnt matter if its B2B or B2C.
Answer: It’s the pricing page. The path to a signup or purchase may include a variety of page views, but it almost always includes the pricing page. In this article, we’ll show you examples from a variety of SaaS pricing pages. 7 SaaS pricing page examples. Add a summary table for pricing plans. How do we know?
By BluLogix Team AI Billing Innovations, Usage-Based Pricing, Credits, and Prepaid Models AI Billing Needs a New Approach Unlike traditional SaaS, AI products often require real-time metering and consumption-based pricing. Companies must find ways to manage infrastructure costs while giving customers flexibility and predictability.
Changing customer expectations, digital advancement, and transforming market trends call for a price discipline. Fair and competitive pricing, especially in the SaaS arena has emerged as a strong requirement for businesses looking for operational stability. What is Dynamic Pricing SaaS? 7 Types of Dynamic SaaS Pricing 1.
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