Don’t Confuse Room at the Bottom with Disruption
🤷♀️You, around $30m-$40m ARR: "Why would anyone copy us? This is so, so hard. Do something easier." 🏃♀️Them: "They are doing $30m-$40m ARR!! Wow!! We can do a new, better version of that and do millions in revenue!!" — Jason ✨👾SaaStr 2025...
A Solution Sale Can Capture 3-20x the Revenues of A Tool Sale. With Almost the Exact Same Core Product.
Recently, I caught up with two great entrepreneurs/CEOs, both doing a few million in ARR and growing quickly. Doing well. Both had a roughly similar make-up of customers, split between: Big Customers (Fortune 500 / Global 2000 types) — not many, but each paying...
Why Tilting Just a Smidge from Self-Service Can Grow Your Revenue 30x
Recently I’ve been fortunate enough to meet with a number of outstanding entrepreneurs building self-service SaaS business at the bottom of the market. A customer base made up of Very Small Businesses and individual business purchasers in slightly larger...
How to Cope With Long Sales Cycles
Few things will frustrate you more in the early days than long sales cycles on bigger deals. A great logo will come in … but they’ll talk about maybe deploying at the end of the year. Maybe. You’ll feel like you just don’t have the time for...
Doing 5, 6 or 7 Figure Deals? Don’t Forget the Services Revenue
25% of revenue from professional services may sound high, but it’s a fairly standard ratio in true enterprise software. Importantly, Qualtrics’ margins remain high so it’s not losing money on its services. Gross margins on services are about 35%. — Jason...
How Cheap a Product Can You Have And Still Have Salespeople?
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. And it became clear...
How To Drive Up Your Average Deal Size. And Remember — Almost All Pricing is Relative.
You could spend days reading about pricing and pricing strategies in software on the web, but a lot of this content doesn’t really hit one, basic fundamental point — there is no real reason any particular piece of software should cost anything in...
The Easiest Ways to Get From $1M ARR to $10M ARR
Ok, you’ve finally crossed $1m, $2m, $4m ARR. Now — you just want to get there faster. And that’s where you’ll make a lot of mistakes. The most important thing is not to chase the shiny penny, assuming you are growing at least 60%...
SaaS Pricing Pages Do Seem to Use the ‘Decoy Effect’. But Not So Much For Bundles.
Q: How is the ‘decoy effect’ used to increase add-on and bundle sales in SaaS? It’s an interesting question in SaaS. Do we see the classic ‘decoy effect’ — vs. just highlighting the most popular version — on SaaS pricing pages? The classic decoy effect is...
SaaStr Podcast #398 with Salsify Co-Founder & CMO Rob Gonzalez
SaaStr Podcast #398 with Rob Gonzalez, Founder & CMO @ Salsify: How To Price To Maximise For Upsell and Expansion, Why and When To Engage with Partner Programs & How To Correctly Segment Customer Profiles Most Efficiently
It’s Hard to Make Money in SaaS At Much Less Than $10 / Month Per User
What product would one million people be willing to pay $1 for monthly? It’s an interesting question and challenge — and one very few SaaS companies have taken up. Dropbox has marched up from $5 to $10 for their basic paid plans over the years, as has Box mostly: Yes,...
SaaStr Podcast #395 with UserTesting CEO Andy MacMillan
SaaStr 395: Why Seat Based pricing Will Die and Volume Based Pricing Is Optimal, How To Structure Pipeline Meetings Most Effectively & How To Think Through Demand Gen Strategically with UserTesting CEO Andy MacMillan
ServiceNow Has 1,000+ $1m+ Customers. The Enterprise is Plenty Big.
There are a few magical moments as you go upmarket in SaaS: The first time you close a $1m TCV (total contract value) deal. E.g., $250k a year for 4 years. The first time you close a $1m ACV deal. A $1,000,000 a year deal. The first time you close a $1m ACV deal...
Roundtrip Revenue & Buying Your Customers’ Products: Probably, Just Do It
If you’ve been around since the earlier days of the internet , a certain phrase may send shivers up your spine — “Roundtrip Revenue.” People went to jail at AOL for this, overstating revenue by as much as $1 billion that wasn’t really...
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