It took me a long time to understand why companies price this way. The reality is that many viable SaaS businesses have fewer than 100 customers. If each custom

It took me a long time to understand why companies price this way. The reality is that many viable SaaS businesses have fewer than 100 customers. If each customer pays you 1 million a year that's a hundred million dollar a year SaaS business commanding a valuation of 500 million dollars or more. The problem is that this SaaS business needs to find a pricing model which net's them 1 million per customer. Charging too little means the business will starve, too much means that customers won't sign up. Sales & Contract negotiations can help arrive at the right number. Guessing the pricing model after 1-2 customers can break the business if you don't have infinite VC money.