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The one piece to read if you only read one. It puts the trial and freemium question inside the bigger strategic choice (maximisation, penetration, skimming) so you are picking a funnel that matches your plan rather than copying whoever you admire.
The Complete Guide to SaaS Pricing Strategy
From Tomasz Tunguz by Tomasz Tunguz 25 min read
- Payback period is customer acquisition cost divided by gross margin per customer.
- Inside sales on a 5K to 30K dollar product does 3 to 8 deals a month, field sales does 1 to 3 a year.
- Customers on a three part tariff grew usage 15.1 percent on average versus 0.9 percent on a two part tariff.
- In 2023 usage based companies saw sales cycles stretch more than seat based ones, 29 percent versus 21 percent.
