Kellblog

AUGUST 7, 2019

Say you sign a three-year deal with a customer that ramps in payment structure: year 1 costs $1M, year 2 costs $2M, and year 3 costs $3M. the right for 1,000 people to use a SaaS service) – so the payment structure is purely financial in nature and not related to customer value. Equal Value: The Price-Ramped Deal.

Deferred Revenue 75

Deferred Revenue Pricing Payments SaaS Payments 75

Kellblog

MARCH 6, 2019

Enterprise SaaS has drifted to a model where many, if not most, companies do multi-year contracts on annual payment terms. Moreover, with a default annual increase of 5 to 10% built into your standard contact, you can offer a “price lock” without any discount at all (i.e., How did we get here?

SaaS Payments 74

SaaS Payments Payment Solutions Payment Services Payments 74

ProfitWell

NOVEMBER 8, 2019

Scheduled payments, aka recurring billing. Scheduled payments have become a core form of revenue collection. Of course, recurring payments vary depending on the business. As the subscription universe continues to expand, you can expect to see even more subscription payment plans. What are subscription payments?

Merchant Services 68

Merchant Services Payment Features SaaS Payments Payment Services 68

ProfitWell

NOVEMBER 15, 2019

So I’ll unpack some of our favorite tools that cater to certain needs—analytics, accounting, retention, pricing, and more. There are hundreds of SaaS tools online that will help your business increase retention and decrease churn. From optimizing your pricing to CRM—there’s a tool tailored for all your SaaS needs. Analytics.

Retention 56

Retention Pricing Payment Methods SaaS Payments 56

Kellblog

OCTOBER 13, 2022

I’m writing this post to help readers who (like me) grew up in an annual subscription SaaS world adapt to the new and increasingly popular world of usage-based pricing [4], including month-to-month contracts and variable fees [5]. They would not report it as baseline and overage revenue, but aggregate it to F&B revenue [14].

Metrics 141

Metrics SaaS Payments SaaS Payment Features 141

Subscription Flow

SEPTEMBER 18, 2024

Accrual accounting states that revenue must be counted when it is earned, rather than when payment is received at your end. Cash is not equivalent to revenue. Revenue is earned only when a company fulfills its obligations toward its customer. The payment terms must be properly defined.

Payments 52

Payments Payment Methods Revenue Payment Services 52

Subscription Flow

SEPTEMBER 12, 2024

Simply put, revenue recognition pertains to the notion that a company’s revenue is generated or “earned” when it has fulfilled its obligation to its customer. This is in stark contrast with the traditional cash-based accounting which counts revenue at the time of the sale, or when the payment is received by the company.

SaaS Payments 52

SaaS Payments Payment Services Payments Payment Features 52