Article · 25 min read

The Complete Guide to SaaS Pricing Strategy

Tomasz Tunguz Free Beginner

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.

• 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.