Software Executive Magazine

February/March 2018

Software Executive magazine helps software executives grow their businesses by showcasing the business best practices of our readers, executives from established and innovative software companies.

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Page 9 of 43

B2B SaaS Pricing & Contracting Data SOURCE: SaaS Capital Your software might be able to solve customers' problems better than any other solution, but your code base, sales engine, and marketing prowess are irrelevant unless you get your pricing model right. SaaS Capital's recent survey of more than 700 private SaaS companies provides benchmarks to show how you stack up against your peers and offers insights about how your pricing strategy can impact your overall growth. 65% of SaaS companies employ FIXED PRICING. 35% of SaaS companies PRICE DYNAMICALLY month-to-month. Nearly 50% of companies utilizing fixed pricing establish pricing based on number of users. FIXED PRICING DRIVERS Cost to provide the service Number of Users Number of Locations Number of customer's employees, enrollees, students, etc. Other Size of customer's revenue 15% of SaaS companies employing fixed pricing derive it from perceived value or from the cost of delivering the service. 50%+ of SaaS companies surveyed OFFER DISCOUNTS . There is a 15% difference in median growth rates between companies BILLING ANNUALLY (about 35%) compared to companies with MULTIYEAR CONTRACTS (about 20%). GROWTH RATES BY BILLING FREQUENCY 40% 0% Median Growth Rate Primary Billing Frequency Annual Multiyear BY THE NUMBERS Index SOFTWAREEXECUTIVEMAG.COM FEBRUARY/MARCH 2018 10

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