What is the average percentage of annual vs. monthly plan sold for a BtoB SaaS startup targeting the SME market?

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JASON LEMKIN

Here are some rough-and-tough numbers:

If the customers are so small they are basically paying out of their own pockets … then 80%+- will pay monthly.  20%+- will pay annually to save money.  But most work rather skip the discount.

Once the customers get large enough, and you have a brand … in the enterprise, for six figure deals … almost all will want to pay annually via invoice.  Anything else is way too much trouble to get through procurement, accounting, etc.  And while it’s your budget — it’s not your money.

The more you are between these two ends of the spectrum, your ratio will likely be in-between.

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Published on August 27, 2015
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