article thumbnail

The Complete Guide to SaaS Pricing Strategy

Tom Tunguz

Most startups play defense when discussing pricing with customers. They use pricing as an offensive tool to reinforce their product’s value and underscore the company’s core marketing message. For many founding teams, pricing is one of the most difficult and complex decisions for the business.

article thumbnail

How pricing strategy helps shape your entire business model

Intercom, Inc.

The SaaS industry is constantly evolving, and for many companies in the space, that means having to evolve their business model. However, that doesn’t necessarily mean a “pivot”, but more often the evolution is a shifting business model as the company scales and the user base grows and changes. Gaining new customers.

Insiders

Sign Up for our Newsletter

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

article thumbnail

Where AI Really Matters in Vertical SaaS With CEOs of Owner, Alloy Automation, and DoNotPay

SaaStr

Companies need to: Ensure secure data handling Maintain clean data for model training Integrate effectively across multiple systems Enable real-time data access where needed Evolution of Business Models The integration of AI is driving changes in how vertical software companies approach pricing and business models: Pricing Strategies Traditional subscription-based (..)

AI 227
article thumbnail

HubSpot Co-Founder and Chairman Brian Halligan on SaaS Markets, Board Meetings, and AI’s Impact

SaaStr

Existing distribution channels: While startups are racing to build distribution, incumbents already have it However, the business model disruption around AI pricing remains a challenge for larger players to navigate.

AI 290
article thumbnail

Leading the Development of Profitable and Sustainable Products

Speaker: Jason Tanner

A sustainable business model contains a system of interrelated choices made not once but over time. We’ll explore how to shift from ambiguous descriptions of value to economic modeling of customer benefits to identify value exchange choices that enable a profitable pricing model.

article thumbnail

Freemium is Back! But You’ll Need 50 Million Active Users for Freemium to Actually Work as a Business Model.

SaaStr

There simply aren’t enough businesses in the entire country + Europe to get most products to a $100m freemium business in almost any business/SaaS/work segment. Let’s do the math: Assume you can get $10/mo per paid user (a good basic price for Freemium for SMBs). To build a $100m business (i.e.,

article thumbnail

30+ Founders and Execs Share Pricing and Billing Practices … That Just Weren’t Worth It

SaaStr

Q: What billing or pricing tactic have you found in the end just wasn’t worth it? ” and “Something we found really effective at CoursKey, and other vSaaS businesses will likely find as well: Instead of running pilots, sign a multi-year contract but give them an opt-out after 3-6 months. . Jason, ed. : Jason, ed. :

Pricing 325
article thumbnail

The New Frontier: A Guide to Monetizing AI Offerings

Speaker: Michael Mansard and Katherine Shealy

Backed by an acclaimed recent in-depth study of over 70 real-world GenAI offers conducted by Michael, we’ll explore the four avenues for packaging AI offerings, the importance of usage-based pricing, and how to craft a strategy that is agile, scalable, and aligns with customer values.