Q: For a Saas startup, what is better: to bill clients annually or monthly? Why?
It’s the 2020’s.
Bill and charge your customers the way they want to be charged. Ask them. And copy the pricing patterns of similar apps they already use.
Even SMBs today have now deployed 100+ SaaS apps. Some enterprises are at 500+, or even more.
So we know.
- How we want to try new apps (15 days? 30 days? 1 limited free edition?)
- How we want to test new apps (if they want to do a pilot, let them!) … and …
- How we want to buy.
Take friction out of the sales process. If they want to buy annually for a discount, let them. If they want some utility pricing (like Stripe or Twilio), let them.
Let them buy the way they are already used to buying 100 other SaaS apps they use and love. Make it familiar. Make it easy.
And you’ll close more. And thus … make more.
A bit more here: Your Product Has to Be Easier to Buy Than to Use | SaaStr