Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

SaaS Billing strategy - a check list

720 views

Published on

A check list of 11 questions that we asked ourselves while implementing a 3-tier sales strategy (online sales, direct sales and indirect sales through channel partners).

Published in: Technology
  • Be the first to comment

  • Be the first to like this

SaaS Billing strategy - a check list

  1. 1. SAAS BILLING – A CHECK LIST Based on the experience and requirements specific to Emixis, fleet, asset & mobile workforce management emixis.com
  2. 2. THE PRODUCT – SOLD ONLINE, DIRECT & INDIRECT MAIN FEATURES  Job Scheduling  Time Tracking  Job Reporting  GPS Tracking OPEN PLATFORM  Standard ERP-CRM integrations  Web Services for Integrators  Deployment and invoicing tools for Resellers WORKFORCE MANAGEMENT  Technical Services  Construction  Merchandising  Services to People  Services to Business www.aidoo-mobile.com
  3. 3. PRICING – BILLING CHECK LIST  Check business plan (cashflow awareness)  SaaS means increased competition  Price level definition  Channel conflicts  Country specific pricing  Price structure  Frequency of billing  Contract duration  Trial phase  Invoicing  Payment methods
  4. 4. OUR INITIAL MOTIVATIONS FOR CLOUD - SAAS Fleet Management 16 € /month
  5. 5. ASP & OWN INFRASTRUCTURE  Business model:  License  Setup project  Hosting  Example:  License: 20.000 Euro  Setup: 6.500 Euro  Hosting: (/month)  250 Euro  162 Euro (support)  10 Euro / user 33 Euro / month / user 36 months – 50 users
  6. 6. … TO SAAS PLATFORM IN THE CLOUD  Business model:  SaaS  Micro Setup project  Example:  Setup: 2.500 Euro  Hosting: (/month)  25 Euro / user 26 Euro / month / user 36 months – 50 users
  7. 7. MOVING TO SAAS – FINANCIAL IMPACT CROSSING THE CHASM ! Cashflow !
  8. 8. PRICING – BILLING CHECK LIST  Check business plan (cashflow)  SaaS – Higher competition… price/feature pressure  Worldwide  One-click away from competitor  Price drop = higher volume needed
  9. 9. PRICING – BILLING CHECK LIST  Check business plan (cashflow)  SaaS – Higher competition… price/feature pressure  Price level definition  Cost+, value-based, market
  10. 10. PRICING – BILLING CHECK LIST  Check business plan (cashflow)  SaaS – Higher competition… price/feature pressure  Price level definition  Channel conflicts  Online, direct, indirect sales Maintenance 20% Services 50% License 50% 30% - Sales Cost (fix + commission) Traditional Software Sales 30%-60% to reseller DIRECT SALES INDIRECT SALES
  11. 11. PRICING – BILLING CHECK LIST  Check business plan (cashflow)  SaaS – Higher competition… price/feature pressure  Price level definition  Channel conflicts  Online, direct, indirect sales INDIRECT SALES  From “box moving” to “services” shift  Setup, Support services + small commission on recurring revenues
  12. 12. PRICING – BILLING CHECK LIST  Check business plan (cashflow)  SaaS – Higher competition… price/feature pressure  Price level definition  Channel conflicts  Country specific pricing  Local competition level, World Price Index  Display price ?
  13. 13. PRICING – BILLING CHECK LIST  Check business plan (cashflow)  SaaS – Higher competition… price/feature pressure  Price level definition  Channel conflicts  Country specific pricing  Price structure  1 price, module pricing, /user, /active user, /group…  Complexity of invoicing…  Avoid complex pricing (online = simple) !  Entry-level for free?
  14. 14. PRICING – BILLING CHECK LIST  Check business plan (cashflow)  SaaS – Higher competition… price/feature pressure  Price level definition  Channel conflicts  Country specific pricing  Price structure  Frequency of billing  Monthly, quarterly, yearly  With or without longer term commitment  Per use (transaction, campaign)
  15. 15. PRICING – BILLING CHECK LIST  Check business plan (cashflow)  SaaS – Higher competition… price/feature pressure  Price level definition  Channel conflicts  Country specific pricing  Price structure  Frequency of billing  Contract duration  SaaS = Pay per use  No or limited retainer fee  SaaS is not Sell & Lease Back !!!
  16. 16. PRICING – BILLING CHECK LIST  Check business plan (cashflow)  SaaS – Higher competition… price/feature pressure  Price level definition  Channel conflicts  Country specific pricing  Price structure  Frequency of billing  Contract duration  Trial phase (functional coverage, duration)  Duration: 1 month, 2 week, 1 week?  Coverage: ideally all available !
  17. 17. PRICING – BILLING CHECK LIST  Check business plan (cashflow)  SaaS – Higher competition… price/feature pressure  Price level definition  Channel conflicts  Country specific pricing  Price structure  Frequency of billing  Contract duration  Trial phase (functional coverage, duration)  Invoicing  Don’t forget to check VAT !
  18. 18. PRICING – BILLING CHECK LIST  Check business plan (cashflow)  SaaS – Higher competition… price/feature pressure  Price level definition  Channel conflicts  Country specific pricing  Price structure  Frequency of billing  Contract duration  Trial phase (functional coverage, duration)  Invoicing  Payment methods  credit card vs bank transfer…
  19. 19. WHICH CLOUD ? WHAT GARTNER SAYS…  Challengers may be interesting
  20. 20. PRICE DROPS DUE TO COMPETITION & VOLUME… 
  21. 21. Lionel Anciaux ENTREPRENEUR - COACH CEO EMIXIS Fleet, Asset & mobile Workforce Management President SIB Software in Brussels Cluster L.ANCIAUX@EMIXIS.COM linkedin.com/in/lionelanciaux/ @lionelanciaux www.hightech-entrepreneurship.com

×