What are things to consider when starting a Professional Services team in a SaaS company?

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JASON LEMKIN

I think the #1 question to ask — and it’s a simple one — is: Are You Already Doing Professional Services For Free?

For most of us, in larger deals, even $20k ACV deals, the answer is often Yes. You’re already doing it. To make the customers happy and successful.

If so — then charge for it.

Then, figure out how much you can charge for the professional services.

  • Can you break even? If so, dial it up.
  • Can you not lose too much money? Still worth it, most likely.

ProServ does not need to make money.

And. Customers are generally fine paying for it in larger deals. In fact, they expect to. They are generally OK paying at least 15–20% of the first year ACV for services. Sometimes a lot more, if they are getting a lot more. But at least 15–20%.

So you might as well charge.

And see if you can use that money to make an extra dedicated hire. Or 2. Or 10.

More here: https://www.saastr.com/dont-forg…

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Published on May 16, 2017
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