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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.
Pricing is more than just a number on a contract — when used thoughtfully, it can become a strategic tool for your SaaS product that can drive product adoption, customer satisfaction, and business growth. ” Pricing is also more than just the bottom-line price level. ” So, How Should You Price?
Dear SaaStr: When and how should SaaS startups offer reduced pricing vs the competition? For most SaaS apps, you want to at least start with just right, Goldilocks pricing: #1. Too high a price, and you start to add friction to the sales process. Today, the average SaaS customer has purchased 100+ apps.
. #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. But now there’s been a broad shift toward usage-based pricing or seat-based pricing, or a combination of the two.
Speaker: Igor Stenmark, Andrew Dailey, &Youssef Yaghmour
Unleashing Usage-Based Pricing to Drive Growth, Customer Satisfaction and Retention: The Why’s, How’s and Roadmap Practical Steps to Making Consumption Pricing Models Simple As companies strive to boost revenue, deliver customer value, and stay competitive, they are increasingly embracing the potential of usage-based pricing.
. #4: 10 Simple Steps to Improve The Odds You Get VC Funded #5: Pitchbook: 30 VC Firms Raised 75% of All the VC Capital in 2024 Top Videos and Pods: #1: What It Really Takes to Sell To Developers and Engineers with Komodor CRO Jim Hunnewell #2: How to Think About Product-Led Growth, Bootstrapping vs VC, and Early Exits with Jason Lemkin #3: From (..)
So we have a classic set of New Year’s Resolutions in SaaS that we update every year. Over the years, so much has changed in SaaS. So with that here are Your Top 10 New Years SaaS Resolutions for 2025: #1. Raising prices may or may not work for you. The best grow faster than ever. Not yet, at least. Of Marketing.
SaaStr CEO and Founder Jason Lemkin recently sat down with HubSpot Chairman and co-founder Brian Halligan , who shared valuable insights on the current state of SaaS, evolving board meeting formats, and how AI is reshaping the industry. Our revenue team went on to be the CROs of Brex, Rippling ,Gong, so many SaaS leaders, like 10 of them.
Dear SaaStr: When Should a SaaS Company Allow Month-to-Month Contracts vs. Requiring Annual? And that includes pricing. One caveat: if your product requires significant onboarding and business process change, monthly pricing sometimes just doesn’t work. I think this is a topic where you get a lot of bad advice.
As companies strive to boost revenue, deliver customer value, and stay competitive, they are increasingly embracing the potential of usage-based pricing. However, despite the growing recognition of its benefits, there is a lack of comprehensive guidance o
Ironclad CEO and co-founder Jason Boehmig joined Seema Amble, Partner at Andreessen Horowitz at SaaStr Annual to share their observations on what’s currently working and what’s not quite there yet for Artificial Intelligence (AI) in SaaS. What’s Currently Working in AI for SaaS 1.
Dear SaaStr: How Big Should The Addressable Market Be to Go into Vertical SaaS? I try to look at two things in Vertical SaaS startups, at least when investing : Will everyone in the vertical / industry use it? It’s just hard to get most vertical SaaS start-ups to scale if they can’t get to a $10k ACV. So be honest.
Private Equity Gets Very Interested in SaaS Once You Cross $20m ARR, growing 30% — if you are burning almost nothing. But Andy got 3 other firm offers through the bank he hired — along with a price more than $10m higher. Private Equity has different goals, and Andy did a great deep dive on the process.
Meet Wyatt Jenkins: From Construction Sites to Chief Product Officer If you want to understand how vertical SaaS companies scale to $1B+ in revenue while staying true to their customers, there’s no better person to learn from than Wyatt Jenkins, Chief Product Officer at Procore Technologies.
Generative AI is no longer just an exciting technological advancement––it’s a seismic shift in the SaaS landscape. You’ll walk away with the following insights: 🚀 GenAI as a Game Changer: Learn why GenAI is revolutionizing SaaS and how it opens new opportunities to innovate your business model.
So SaaS is back. Top SaaS stocks are on fire the past few months, and the SaaS downturn in B2B2B appears to be behind us. And as stock prices rip higher, growth VC floods back in. Some rough metrics for the last 4 SaaS IPOs — which again are epic ones: These are rough metrics. It’s natural.
SaaSpricing isn’t static – it’s a living strategy that grows with your company. In this article we dive into a playbook for pricing across different stages of company growth, inspired by Geoffrey Moore’s Crossing the Chasm. Tiered pricing models emerge to address these differences.
On the other hand, the classic leaders in SaaS have rebounded from 2024 lows both in terms of growth and market caps. And all the leaders in SaaS are leaning in on AI, from Salesforce to Asana to HubSpot to ServiceNow and more. One thing does seem clear though: AI makes SaaS look expensive. To raise prices even more?
Pricing an AI product will be a defining question in software for the next few years. We can observe the market trends today across some of the larger SaaS companies who offer AI pricing. Company Product Base Price AI Price Ratio Github Github Enterprise 21 10 0.67 AI products offer productivity gains.
Dear SaaStr: Should SaaSPricing Be Adjusted for Different Geographical Markets? Your public pricing? Second, your users will see the pricing is “cheaper” somewhere else and get mad. Make the pricing roughly comparable. And you should do this And finally, the biggest “exception” is non-transparent pricing.
Her company specializes in API integration platforms that enable SaaS companies to launch integrations faster and automate complex business processes. The post Where AI Really Matters in Vertical SaaS With CEOs of Owner, Alloy Automation, and DoNotPay appeared first on SaaStr.
In the SaaS industry, the checkout experience can make or break a sale. Focusing on these three key areas can help your SaaS business win more customers: Language. Furthermore, showing the local currency at checkout helps build trust by providing transparency in pricing. Payment methods. Currency display.
Here are the questions we sought to answer by analyzing anonymized subscription data for transactions across various Asian countries (excluding broader “APAC” regions like Australia, New Zealand, and Indonesia): How do customers in Asia’s growing markets prefer to manage their SaaS subscriptions? or EU, or are they different?
3x as productive as humans, which would parallel mechanical robots, how does a software company price? Building on yesterday’s post , pricing in software companies may change significantly when AI agents become the norm. The SaaS business model of the last 20 years for SaaS is a beautiful one.
Dear SaaStr: What’s the #1 Most Important Thing in Pricing A New SaaS Product? Most first-time SaaS CEOs price too low and don’t drive ACVs up quickly enough because they don’t quite yet understand the context of the product. More here: The 3 Types of Day 1 Pricing: Low End of Normal. At least annually.
Are we thought the endless price increases we saw in 2023? A stunning 76% of you are raising prices in 2024. Personally, I’m a fan of only raising prices if you’ve earned it, and focusing on raising prices on new customers, not just the base. Apparently not. That’s up from 54% in 2023.
So the latest SaaS leader to cross $1B ARR is Klaviyo. It was the only SaaS IPO on 2023. But SMBs in the middle have become more cost and price-sensitive. #10. Klaviyo dominates marketing in the Shopify ecosystem and in ecommerce, and just keeps on scaling. The only one! ” 5 Interesting Learnings: #1. SMB Weaker.
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. Usage is volatile.
It’s driven Atlassian stock up +28% after the results: Is SaaS back? Seat Expansion Driving Growth, Along with Cross-Sell of New Products Long live per-seat models and pricing! A Big AI Push, But Being Very Conservative on Consumption Pricing For now, Atlassian is sticking mainly to per-seat pricing.
SaaS is getting more expensive, for a variety of reasons. We put up a quick survey on LinkedIn to see how you were all thinking about raising prices — and the majority of you said you were planning to in 2023: It’s a complex topic. Most of us over time end up driving up our ACVs, but it’s not always though price increases.
So we’ve covered HubSpot more than any other SaaS leader on this 5 Interesting Learnings series, in part because so many of us use HubSpot ourselves, and in part because its metrics and use cases are so like many of the apps we build and sell ourselves. A Per Seat Model is Key to Expansion at HubSpot Long live per-seat pricing!
Or will they expect it to be included in the already in many cases expensive purchase price for the core product? Many SaaS probably have gotten much, much more expensive over the past 3 years. The Old SaaS Products of 2021 are looking very creaky and dated. So will buyers really pay more for AI? We’re still learning.
Is SaaS Back? (TL;DR: 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. How to Leverage Pricing and Packaging to Drive Revenue with Miro, Loom, OpenAI, and Splunk #3.
So our economy is going through some unpredictable transitions, with Cloud and SaaS companies powering through with still-strong growth and unemployment remaining at near record lows, while inflation, interest rates and more batter us at the same time. The post We’re All Paying the Price Now for Massive Overhiring appeared first on SaaStr.
The Next Big Thing in AI Compliance: What ISO 42001 Means for Your SaaS Company The Cold Hard Truth About AI Risk in SaaS Picture this: Your product team’s AI chatbot gets breached. Automate (Because Manual Doesn’t Scale) Smart SaaS companies are using platforms like: Vanta Drata Secureframe Why? No protocol.
Series B and later prices are down across the board from their peaks in 2021 and Q1’22, down 30% or more. Fenwick’s blended numbers see overall Series B and later round pricing down about 30%. #3. But overall, valuations and prices post-Series A still remain way ahead of where they were up until 2018.
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. A related post here: It Takes at Least 7-10 Years in SaaS to Go Big: Can You Do The Time? The post What Are The Odds You Get Acquired Within 5 Years for a Good Price? Around 1%-1.5%
They aren’t scientific, but they do poll out 25,000+ LinkedIn followers, who consist mainly of SaaS executives. Notwithstanding the drama in the public markets, most SaaS companies and startups are growing faster than ever. #6. 59% of you have raised prices this year. So there’s something to them. At least. #23.
How to price and package AI SaaS products with Sandhya Hegde at Unusual Ventures Pricing is always a super popular topic and this was a great one from Unusual Ventures on pricing in the AI age. Watch / listen and you will do better in GTM. I guarantee it. #5.
Should we care about AI infrastructure when building SaaS applications? The price for inference has massively plummeted this year, so you have more powerful models to build into your application, and they cost less every time you use them. The Head of the Global VC Practice at Oracle, J.D. You do pay however pay for inference.
There are so many metrics out there these days on how public SaaS companies are doing. The latest Bessemer Parting the Cloud summarized it all I think with one helpful metric: SaaS multiples are down 75% from a year ago. . A dollar of SaaS revenue is worth about a quarter of what it was a year ago. What does this mean?
We’ve been doing the 5 Interesting Learnings at SaaStr for quite a while, looking at many of the public SaaS leaders and pulling out the top learnings for founders and SaaS execs. And it’s the true magic in scaling SMB SaaS. And until it started to go upmarket after $125m+ ARR, it never really raised prices.
SaaS buying has changed. As buyers grapple with expanding technology, higher prices, and a need for efficiency, SaaS companies need to deliver what their audience is looking for to win in the market. SaaS Market Snapshot In Q1 of 2023, Vendr gathered data on SaaS Spending and yielded some pretty interesting results.
It’s almost time again for Cyber Weekend, and November sales spikes aren’t just for holiday gifts and physical goods — SaaS and software companies also benefit from this annual increase in sales. trends in year-end SaaS and software sales data. trends in year-end SaaS and software sales data. dollars for simplicity’s sake.
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