Yeah, but that logic is really for the very small number of clients on a very high revenue per client. I think the example in the article used such low numbers

Yeah, but that logic is really for the very small number of clients on a very high revenue per client. I think the example in the article used such low numbers to make the calculation easier. In most cases, the kind of SAAS they are talking about would have at least one or two orders of magnitude more users. Reshaping the question: would you rather have 50,000 users paying $1 or 1,000 paying $50 each? your MBA caveat largely becomes moot.