Video · 55 min

SaaS Talks #22: Usage Based Pricing

Stellaris Venture Partners Free Advanced India

SaaS Talks #22: Usage Based Pricing

An honest look at what usage based pricing does to expansion and to forecasting, including where it backfires. Run by an Indian fund with Indian SaaS operators, so the migration risk is discussed for companies your size.

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The question it answers

  1. Does usage-based pricing really lift expansion, and should we switch?

Read with it

  1. The cleanest definition of expansion MRR with the formula and the benchmark that matters: top companies get up to 40 percent of... Chargebee Article · 7 min read Expansion MRR: Definition, Formula, and Impact on SaaS Growth Chargebee
  2. Accel's argument that expansion revenue is the specific thing that carries a company past $50M ARR, with the Twilio and Shopify... SeedToScale by Accel Article · 9 min read How can SaaS startups tackle scaling beyond $50mn in ARR? Vyushita Sahay
  3. The net retention numbers by pricing model (122 percent top quartile for usage-based versus 109 percent without) plus the... TechCrunch Article · 10 min read Usage-based pricing is a company-wide effort Kyle Poyar
  4. The primary-source teardown behind the famous 158 percent net dollar retention, including the detail most people miss: it was... Public Comps Article · 18 min read Snowflake S-1 and IPO Teardown Jon Ma
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