2 ms·
Most SaaS pricing pages give you the impression that pre-payment is prefered to month-by-month (hence the discount you get for buying 12 months today). With th
by johnrob 12y ago
Most SaaS pricing pages give you the impression that pre-payment is prefered to month-by-month (hence the discount you get for buying 12 months today). With this in mind, isn't the old enterprise model just the ultimate future payment, and thus the ideal pricing model? You get all the cash immediately and there is zero churn risk.
The SaaS model is great for the customer and bad for the business. Maybe that's why the market doesn't like it so much.
- clarky07 12y agothat's too simplistic. there are pros and cons to each. for example, when running a saas you have a decent idea of how much revenue you'll have next month. with a one time sale model you start next month at 0 and only make money if you find new customers. (obviously not taking into account maintenance contracts, but still the point remains)
- johnrob 12y agoHow about if after getting a million dollar check, you just pretend that it represents 100 10k monthly payments with a 0% chance of cancellation. Does that sound more stable/predictable?