SaaStr

DECEMBER 21, 2020

Do we see the classic ‘decoy effect’ — vs. just highlighting the most popular version — on SaaS pricing pages? The classic decoy effect is the Medium tub of popcorn, priced just below the Large to make the Large seem cheap: What do we see in SaaS? Boy, the Dropbox pricing page has changed a lot. Let’s look at Dropbox.

Pricing 317

Pricing Scale SMB SaaS 317

SaaStr

JANUARY 8, 2025

As Checkr follows usage-based pricing, it’s a transactional business that needs to be managed differently than a typical subscription SaaS model since they only earn revenue when the customer is using the product. The SMB sales team was incentivized purely on logo acquisition rather than revenue.

Revenue 293

Revenue Scale Sales Hiring Compensation 293

SaaStr

JULY 14, 2020

With SaaS sales, annual price or monthly price that’s billed annually? It may be the most successful SMB-focused app of our current generation. No hiding the monthly option, no pricing confusion: In fact, 26% of Zoom’s customers still pay monthly, even at $1b+ in ARR: More here: 5 Interesting Learnings From Zoom.

Pricing 301

Pricing Scale Payment Solutions SaaS Payments 301

FastSpring

FEBRUARY 6, 2025

In this episode, we’re going to be talking about how SMB digital brands can win the best talent Joining us for that conversation is someone who knows quite a bit about that. But as from a company standpoint, I don’t necessarily love them and their pricing and lack of customer service. Lizzie, welcome to Growth Stage.

SMB 107

SMB Sales Recruiting Branding Sales Hiring 107

SaaStr

JULY 27, 2022

If a SaaS business hopes to win over the SMB market successfully, it will need a precise GTM approach. Founded in 2015, PayFit is a software company that empowers entrepreneurs and SMBs to digitize payroll and HR processes. Without an autonomous-first approach, you will miss out on many SMBs.

SMB 244

SMB Sales Hiring Scale B2C 244

SaaStr

JANUARY 23, 2025

You need to: Engage with procurement early – don’t treat them as a rubber stamp Build relationships with 20+ key accounts in year one Get executive sponsorship on both sides Never negotiate price with the business buyer Document clear ROI and business cases Remember: The actual buyer is often not the end user.

Enterprise 244

Enterprise Sales Hiring Scale Outsourced Development 244

SaaStr

DECEMBER 14, 2022

Yamini Rangan, CEO at HubSpot, has many insights on how to serve SMB customers at scale. The Challenge of Digital Expansion for SMB. When the shift began in 2020, everyone wrote off SMBs as unprepared for the necessary changes that lie ahead. The past few years have kicked off an unprecedented wave of digital expansion.

Scale 261

Scale SMB Scaling Innovation 261

SaaStr

JANUARY 31, 2023

So Zoom and Shopify are the latest SaaS leaders to do price increases — albeit very differently. Although it’s more impactful than it sounds, because that’s an almost 7% price increase. The SMB segment of Zoom has stopped growing, so going from ~0% growth to 7% growth actually might end up being huge.

Pricing 274

Pricing Merchant Services Payment Solutions Payments 274

SaaStr

MARCH 8, 2024

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. Why is pricing so tricky?

AI 268

AI Artificial Intelligence Pricing SaaS 268

SaaStr

DECEMBER 1, 2021

The post The State of Software Buying: From SMB to Enterprise with G2’s CMO appeared first on SaaStr. Key Highlights: Adopt a product-led growth mindset. Treat your customers like your best marketing partners. Focus on your NRR > ARR.

Software Review 284

Software Review SMB Enterprise Software 284

SaaStr

FEBRUARY 1, 2022

Toast’s SMB NRR is 114% today — but it took 4 full years just to get to 100%. A reminder that you don’t need to settle for sub-100% NRR from SMBs. And also that, with SMBs, it can take a while and a lot of value-add and learnings to get that NRR over 100%. And it’s the true magic in scaling SMB SaaS.

Scale 363

Scale SMB SaaS Scaling 363

Tom Tunguz

MARCH 27, 2023

Startups selling to enterprises have increased 36%, twice those of Mid-Market & SMB focused companies. Mid-market & SMB distributions skew left with up to 10% of businesses reporting a decrease in sales cycle during the period. This figure is statistically significant with a p value of 0.0005.

Startup 350

Startup SMB Headcount Sales 350

SaaStr

JANUARY 3, 2021

One question I struggled with a lot in the early days was what price points supported inside sales reps. It was clear to me that our freemium offering, priced at from $0 to $19/month, couldn’t really support a traditional inside sales team. What about a $199 or even a $99/mo price point? But how low can you go?

SMB 337

SMB Pricing Sales Metrics 337

SaaStr

JUNE 8, 2022

ARR, Zoom was an SMB powerhouse, with Enterprise growing. SMB is now saturated at $4B ARR and not growing, but Enterprise is picking up the slack and growing faster than ever. Enterprise NRR is now 123%, but than means SMB is now well under 100%. ARR … which it did in just 1 year (!!)

SMB 339

SMB Enterprise Engineering Scale 339

SaaStr

JUNE 27, 2019

It may be the most successful SMB-focused app of our current generation. No hiding the monthly option, no pricing confusion: In fact 26% of Zoom’s customers still pay monthly, even at $500m+ in ARR: More here: 5 Interesting Learnings From Zoom. Then maybe pricing games are worth it. Zoom does not play games. As It IPOs.

Pricing 192

Pricing SaaS Payments Payment Solutions Payment Services 192

SaaStr

FEBRUARY 13, 2025

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. Not just for consumer and SMB. So there are two massively different vibes in B2B and Cloud and SaaS today: Folks fighting to keep slowing growth going.

AI 209

AI ChatGPT SMB Enterprise 209

SaaStr

AUGUST 24, 2022

SMB sales (most of Toast) is very tough to do without a highly efficient and effective sales force. Many SMB leaders have to get very, very good at outbound because of the limited deal sizes. An SMB price point where you can afford to pay the reps reasonably well, but again, where margins are tight.

SaaS Payments 326

SaaS Payments Scale SMB Payment Solutions 326

SaaStr

APRIL 26, 2023

Most of the website / presence growth came from price increases, which saw limited churn as a result. Churn was modest from their price increase, leading to material growth. Relatively inexpensive products selling to SMBs that are truly valuable don’t see much increased churn from moderate price increases. #3.

Scale 291

Scale SMB Churn Pricing 291

SaaStr

FEBRUARY 24, 2021

80% SMB, 20% Enterprise. While Upwork has made inrounds into the enterprise, it remains squarely an SMB product. Upwork charges from 5%-20% of the service price (less the more you make through the platform), averaging out to 12%. So don’t settle for less. This makes the 100% NRR especially impressive in the space.

Marketplace as a Service 336

Marketplace as a Service SMB Cloud Enterprise 336

SaaStr

JULY 14, 2022

Talkdesk, last valued at $10B, started off as an SMB Zendesk and Salesforce plug in at a $25m valuation when I first invested. That’s a big change from a grab-and-go SMB solution in the early days. Tweaking pricing. But pricing tweaks don’t really do that. You should generally do this. Most new features.

SMB 329

SMB Enterprise Government compliance 329

SaaStr

MAY 10, 2023

Pricing is up a modest but material 6% on a constant currency basis, and 3% on an as-reported basis, from a year ago. #3. 23% Customer Count Growth Leads to 30% Revenue Growth, but NRR dips to 104% HubSpot is still very much SMB, especially the “M” of SMB. Basically, we all have to now. #2. Including HubSpot. #4.

Scale 322

Scale SMB Headcount New CTO 322

SaaStr

OCTOBER 11, 2023

Pricing Increases Really Boosted MRR. Shopify’s price increase was the biggest driver here, and that should show up in a good next twelve months of revenue growth. #3. Overall subscription solutions revenue is up just 21%, while payments and merchant solutions are up 35% — from a much, much larger base. #2.

Payments 293

Payments Merchant Services Payment Solutions Revenue 293

SaaStr

MAY 19, 2019

What lessons can we learn from this huge Kiwi SMB success, for other founders? ” So even in SMB sales in smaller markets, if you take dominant market share — you can get to $500m+ in ARR! ” So even in SMB sales in smaller markets, if you take dominant market share — you can get to $500m+ in ARR!

SMB 270

SMB Customer Lifetime Value AWS Churn 270

SaaStr

JULY 31, 2022

The Challenge with SMB SaaS: High Growth Can Only Mask High Churn For Just So Long. SMB SaaS has a lot going for it, but one big existential challenge — inherent churn. 7 Secrets to a Successful SMB GTM Strategy with PayFit and Accel. A deep dive on selling to SMBs and more from SaaStr Europa. It’s not as fun anymore.

New CTO 300

New CTO CTO SMB Venture Capital 300

SaaStr

MARCH 25, 2021

Having said that, the average ACV here is $14,615 … so that’s at the high end of a traditional SMB spend, which probably accounts for the high NRR. Not competing (directly) on price. While Shopify and BigCommerce pricing isn’t identical in the end, their SMB / published pricing is almost identical.

Outsourcing Services 289

Outsourcing Services Payments Merchant Services SaaS Payments 289

SaaStr

APRIL 12, 2025

For example: High-Intent Actions : Visiting your pricing page, requesting a demo, or engaging with a case study. For example: At Adobe Sign / EchoSign, we learned that SMB leads who hadnt used our product at least 3 times were far less likely to convert. Dont Convert Too Early Converting leads too early is a common mistake.

Systems Review 125

Systems Review SMB Engagement Sales 125

SaaStr

NOVEMBER 20, 2020

And it’s very hard to support them with any customer support or salespeople at that price point. Even products that used to be super-cheap, have raised prices to achieve scale. At $12 a year, how much can you spend on live support? Or sales commissions? Or even hosting? E.g., Airtable certainly costs a lot more than Excel.

Scale 293

Scale SaaS SMB Pricing 293

SaaStr

SEPTEMBER 26, 2019

Housing prices apparently are falling in the Bay Area. What we learned from ’08-’09 in SaaS: First, SMB churn went through the roof — as SMBs went under much more quickly and often. As soon as the economy went south, SMBs started to simply go bankrupt and/or shut down. Slack is mortal. functioned.

SaaS Payments 280

SaaS Payments Sales Hiring Scale SMB 280

SaaStr

MAY 24, 2024

ARR: SMB leader HubSpot Enterprise vertical SaaS leader Veeva And collaboration leader DropBox All at the same ARR, but with very different growth profiles, and profitabilty. It’s trading at one third the price of the HubSpot and Veeva. You still have to grow. So what’s the trade-off? DropBox though?

SMB 307

SMB SaaS AI Scaling 307

SaaStr

AUGUST 27, 2022

Salesforce: “We’re finally seeing slowdown now in our commerce, media, telecom, and SMB segments”. While the stock price was hit along with everyone else, the business wasn’t. And at the other end of the spectrum, folks at the intersection of commerce and SMB like Shopify have taken the biggest hit to post-Covid growth.

SMB 292

SMB Scale Cloud Trends 292

SaaStr

NOVEMBER 6, 2023

If you’re selling software to SMB merchants and outside of tech like Shopify and Toast and Monday , things are pretty, pretty good, if in some ways still harder than before. On top of that, inflation and price increases are eating into overall IT budgets. So things are all over the place these days. With some big caveats.

Merchant Services 307

Merchant Services Azure Software AWS 307

SaaStr

JULY 1, 2024

Right now, you may have 3-4-stage sales processes that work for SMB customers. Everything you have now will probably look different upmarket, including pricing. Pricing is a big one. You have your pricing strategy for down-market customers, such as how you price the bundle, packaging, etc.

Sales Hiring 300

Sales Hiring Scale SMB compliance 300

SaaStr

DECEMBER 19, 2019

Many see this price point as not scaleable. We might call them SMEs (vs SMBs). 140%+ for Slack, Zoom and Pagerduty’s SMB customers), they do have to work harder. But in the end, it is providing more products and more value at the same price point. Because in many ways, they are doing it the hardest way.

Outsourcing Services 363

Outsourcing Services Scale SMB Pricing 363

SaaStr

MAY 26, 2019

Price Increases Do Work at Scale. SurveyMonkey increased prices, which resulted in a big chunk of growth. At 16% growth, that’s about half of it from pricing increases. self-service customers, at some point, you can potentially have the entire world as customers and mature out in SMB. A few learnings: 1.

Scale 273

Scale SaaS Payments Payments Payment Services 273

Tom Tunguz

FEBRUARY 6, 2019

These businesses sell at every price point and sell to every operational buyer. In the SMB, month to month is more common. This is true across every price point. The data suggests it’s worth testing payment requirement for mid-market and SMB price points. About 600 companies submitted data.

Payment Services 279

Payment Services SaaS Payments SMB Benchmarks 279

SaaStr

DECEMBER 14, 2022

But … we’re seeing those very low prices bring out the Private Equity firms. Vista acquired Marketo for what seemed like a head-scratching price of $1.79 And a few years after that, it’s at the time smaller, scrappier, SMB competitor called HubSpot … grew into the $15B+ giant we all know and use today.

SaaS 322

SaaS SMB Pricing Marketing 322

SaaStr

JULY 20, 2022

While these aren’t great metrics if Weave was enterprise, they are still solid for SMBs. Many SMB SaaS companies struggle to hit 100% NRR and 80% GRR. A fairly standard SMB price point. With a current stock price of $3.37, the Series C and D investors are substantially underwater. Series C ($5.35

SaaS Payments 284

SaaS Payments Scale Payment Methods SMB 284