Building a SaaS business is all about hockey stick growth. In customer numbers and revenue. Hockey stick growth needs customers to want your product so much that they’ll pay for it. By themselves.
Yet TNW reports that 80 percent of the most successful SaaS products (as measured by VC investment and valuation) in the world don’t have a pricing page. And if you don’t have a pricing page you can’t have self-service signup. After all you need to pay somewhere on your way to the checkout.
Salesforce, the crack cocaine of enterprise SaaS, costs their customers on average $45,000 per annum. The entry level CRM package is $5 per user. Customers quickly pay more to satisfy their cravings.
Successful SaaS business evolve from self-serve to project based transactions to enterprise sales. Their product has been machined by managing high volumes of customers until they’ve a solid product. And solid reason for customers to buy.
A company claiming to be SaaS without publishing a price tag, probably aren’t. Behind the login screen is a complex product and complex pricing. Their likely targets are enterprise customers. With sales relying on relationships and education. Rather than easy to see value and incremental commitment.
SaaS zombies are easy to see. Just look for the sticker price and if there isn’t one then they’re not far out of the grave.
(Chart source is SaaS Startup Strategy | Three SaaS Sales Models )
Originally published on SandHill.com