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Pricing is complex in general, but for SaaS companies even more so. Enterprise SaaS companies spend a lot of resources to acquire customers. Annual billing to a
by rdudekul 14y ago
Pricing is complex in general, but for SaaS companies even more so. Enterprise SaaS companies spend a lot of resources to acquire customers. Annual billing to a large extent helps offset these costs. However a question remains:
How does a new unfunded SaaS company acquire customers, when annual billing can be a big obstacle for sign ups?
- rietta 14y agoYou remove as many barriers to the purchase as possible. Allow monthly credit card billing, but incentivize longer term payments. For example, PivotalTracker.com charges monthly. However, I personally paid them for an entire year to get the 2 month discount! 12 months for the price of 10 months is enough encouragement for me to pay for the entire year.