B2C SaaS is limited to Individuals plans. The ability to offer Team plans is a major advantage of B2B SaaS.
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SaaS companies make disproportionately more money with Team plans:
Individual plans are the definition of a Leaky Bucket, with usual yearly churn rates of 50%. The Individual plan makes sense for enabling sharing and collaboration as soon as you can. But Teams are the ultimate destination.
Total contracted annual recurring revenue is the single best metric for the health of a business. It encapsulates new logo growth, expansion, and churn in a single number. Shows the money that comes in every year for the life of a subscription (or contract).
Usage-based pricing is a go-to-market model where the customer pays based on how much they use your product or service.
It goes by many names: consumption-based pricing, pay-per-use pricing, and pay-as-you-go pricing.
The simplest examples of these are utility bills like water and electricity.
In sales, “Land and Expand” is a strategy to land a customer with a small deal, and then sell into the organization to expand your footprint to more seats, additional departments or more products and services.
Land and expand plays out like this in a SaaS:
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