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US VC backed startup colored glasses: multiyear SaaS contracts. Some people are bootstrapping. And I thought the appeal of SaaS is pay for what you use, and pay
by figassis 3y ago
US VC backed startup colored glasses: multiyear SaaS contracts. Some people are bootstrapping. And I thought the appeal of SaaS is pay for what you use, and pay as you grow? So now the selling point is buy in bulk?
- otteromkram 3y agoThe selling point is to buy what works for you. If you know what size user base you have and can estimate usage, buying ahead of time makes sense. If you're smaller or can't afford a multi-year contract or don't want to get locked into one service, then "pay as you go" makes sense.
- figassis 3y agoThat's my point. Capital rich startups are not the subject of this comment. The reason Placemark is failing is not because it could not get one FAANG contract, it's because many small startups/smbs/single person businesses could not pay $20 for it. The comment was to give one reason I believe many SaaS startups today fail to grow, it's because the $20 is a fee for the small guy (otherwise it would be $500 or a contact us button), but the small guy has 100 other $20 subscriptions x employees, so another $20 is more like $1500+20 a month, and maybe the reason they can only afford 2 employees vs 3.