With SaaS sales, is it better to have an annual price or a monthly price, billed annually?

My Post - 2019-06-28T111113.682.pngIt is better for a very long time to let the customer buy how they are most comfortable buying.

This removes friction from the sales process, leading to a higher and faster close rate.

Let’s take a look at Zoom. Zoom is growing > 100% at $500m in ARR, in an already well established space. It may be the most successful SMB-focused app of our current generation.

Zoom does not play games. Zoom lets small groups pay monthly if they want, and easily. No hiding the monthly option, no pricing confusion:

In fact 26% of Zoom’s customers still pay monthly, even at $500m+ in ARR:

More here: 5 Interesting Learnings From Zoom. As It IPOs. | SaaStr

Small business and individuals often prefer to pay monthly, even at a significantly higher price (e.g., often 20%+ higher). Certainly not always, but often. The money is often literally, or figuratively, out of their own pocket. Few of us like to pay rent annually, even if it were cheaper. – Read more

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