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IMHO pricing per user / per month works well when clients are early and/or small startups, once the client has 50, 100, 200 employees then they must move out of
by nakovet 10y ago
IMHO pricing per user / per month works well when clients are early and/or small startups, once the client has 50, 100, 200 employees then they must move out of these services because they get too expensive.
From the app from the article: 40$ per user / per month
- 10 people startup => 5k a year
- 100 people startup => 50k a year
When it becomes too expensive you only have a few options:
- keep the heavy users in and remove other people from the service
- have a shared user for people that don't use the service that often (If identity is important, who did what, then this becomes confusing)
- move away from this solution, consider competitors
SaaS companies should consider medium to large companies and think about pricing caps, light agent roles, etc.
For example: the first 100 actions are free for each user, after that one simple fee is applied of 40 per month / per user. I don't know what is a proper solution yet.
- deleted 10y ago[deleted]
- Nagyman 10y agoThe trend has been to offer single-sign-on and user provisioning as the carrot to upgrade to enterprise (e.g. Slack), which nearly doubles the cost. For a 200 employee business that's $3K USD/month. Even smaller startups should be using SSO and automated deprovisioning for security. And Slack isn't going to be the only service that wants to double prices for enterprise features while still charging per user. For those prices, we can hire a full time employee just to be the admin for your service and get them doing more productive things on top of that. Charging per user is not sustainable when you get into the higher numbers, so we'll look at alternatives, host our own services long term, and/or hire a dedicated admin.