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Hi. $10/month for a B2B product is very very low and companies don't sell $10/month products with sales people. It won't cover the cost of a sales person's tim
by gotrythis 7y ago
Hi.
$10/month for a B2B product is very very low and companies don't sell $10/month products with sales people. It won't cover the cost of a sales person's time, or ads for that matter. If it costs $100 to get a client, you need them to stick for 10 months before you make anything. With an 8 month runway, your math won't work. It only works if you have great "free" inbound marketing and the time to wait. That's Netflix level pricing, where they have millions of clients and had the funding to cover initial losses while growing the user base.
My first advice is to raise your price! Either that or you need millions in funding to build a marketing campaign and to have the runway to wait until the CAC is covered. I would 10x your price at least, and then offer early adopter discounts to clients who pay for a year now, not when the product is ready, with extra off if they prepay for two years. Then each sale pays you enough to do some development and get the next sale, as opposed to paying you enough to eat at McDonalds once a month.
Also, list yourself on Sploda.com (no association) and update your profile every time something happens, so they start seeing progress.
John
- ghiculescu 7y agoI read it as $10/user/month, not $10/month. Presumably they are trying to sell to businesses with many users.
- oliverx0 7y agoThanks for the feedback, but this is $10/user/month. Many Saas companies charge similar amounts and they seem to be doing fine. I appreciate your feedback though!
- gotrythis 7y agoOh, missed that. Sorry!