(upbeat music)
- Using pricing access to grow your SaaS company.
In today's video I'm gonna answer the questions
how do you increase your revenue?
If you've gotta a SaaS company, you're wondering
how do you capture more value for the value created,
how do you deploy deeper into the
organization so that you can increase your lock-in?
And all of those come down to different pricing axis.
You know recently Brian Halligan, the cofounder
and CEO of HubSpot, one of the latest SaaS companies
to go public and just totally kill it.
Incredible company, big fan of Dharmesh
and all the people that work at HubSpot,
and he wrote a great blog post
about startup to scale-up, and he
shared the whole story of HubSpot,
and in one section that I just thought so fascinating
was the argument that all great SaaS companies
that have been able to scale their businesses,
they've had multiple pricing axis.
That means they have multiple ways
to generate revenue from their customer,
and what Brian notices in HubSpot, they only had two.
And the average company at scale has four to five.
So what I wanna share with you guys
is the four that I think all of you out there
that are building SaaS companies
can implement to really get
the most value from the customer.
The first one is plans, right, which pretty much
every startup SAAS company has plans, right?
Most of them have three tiers, you know,
they have a high priced plan,
they try to get people to subscribe
at the mid-tier and some of you
at the enterprise level might even have a fourth plan
that's kinda like click here to kind of have us
contact you for a special quote, because
that's for these big companies that might have needs around
security and support and service level agreements.
Whatever it is, that's like
your really high-end price point, so the first level
of the first axis is just plans, right?
Have you optimized those plans to really capture
the most value from your potential customers?
The second one is number of seats, you know,
how many customers, accounts, users can use the product.
And having those fixed in your plan so that
if they need more that's another way for you
to up-sell and increase the revenue
by selling them more seats to their product.
So that is a no-brainer, a lot of companies do that.
The third one is add-ons, right?
So think about your product.
Is there any enhancements that you could make
around the usage, the data, the workflow,
that it's either something you've built internally
that's an add-on, or it's something a partner's built
that you can sell on their behalf, and create
a partnership there to do rev-share.
Whatever it is it's an add-on
that enhances the core product.
That is the third area or pricing access
that every SAAS company really needs
to investigate to increase that revenue.
And then the fourth one is other services, you know?
And the gold standard for this in my world
in the SAAS world especially is Salesforce, right?
You think of Salesforce, they're the
world's best SAAS company and their core is a CRM,
but they have several other divisions
from social to support to marketing,
and these different clouds they call them
are other services that you can add on.
And what's great about it is if you can get
a customer buying your core product,
in Salesforce case it's a CRM,
and then buying another marketing component,
or buying the support cloud as well,
you're gonna increase their adoption of your technology.
All the interfaces are similar, the integration is similar,
and you're gonna get better lock-in for your customers
before they decide to make switch to another product.
So having other services, and if you don't have 'em
here's a really great opportunity for you to
look at other partners that might have solutions
that you can partner with and add
them to your add-on services for your sales people
to really create the most value for your customer.
This is really thinking strategically about
where is the value that we could create.
Enhance that value, create more value
for your customer than anybody else
on the planet and you're gonna win.
So here's a real quick recap.
You gotta ensure that you have
the right pricing structure around your plan,
the right number of plans.
the average is three, if you wanna go four
for that high-end one, the number of seats
that you allow per plan and then up-selling
the number of seats is another pricing access.
Add-ons, so what are enhancements
and features to the product.
For example, I know a lot of email solutions out there,
one of their add-ons is to provide social data
on top of those email addresses or CRM tool.
That's a great example of an add-on
that they can charge per email or per batch of emails.
So that's a great add-on.
And then the fourth is other services.
What other products do you have in your company
that you can sell as part of your core,
or partner with other companies that offer that.
Create that partnership.
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your startup and as per usual, I wanna challenge
you to live a bigger life, and a bigger business.
I'll see you next Monday.