SaaS Billing strategy - a check list

Post on 24-Jan-2015

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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).

Transcript of SaaS Billing strategy - a check list

SAAS BILLING – A CHECK LISTBased on the experience and requirements specific to Emixis, fleet, asset & mobile workforce management emixis.com

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

THE PRODUCT – SOLD ONLINE, DIRECT & INDIRECT

www.aidoo-mobile.com

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

OUR INITIAL MOTIVATIONS FOR CLOUD - SAAS

16 € /month

Fleet Management

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 / user36 months – 50 users

… 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 / user36 months – 50 users

MOVING TO SAAS – FINANCIAL IMPACT

CROSSING THE CHASM !

Cashflow !

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

PRICING – BILLING CHECK LIST

Check business plan (cashflow) SaaS – Higher competition… price/feature pressure Price level definition

Cost+, value-based, market

PRICING – BILLING CHECK LIST

Check business plan (cashflow) SaaS – Higher competition… price/feature pressure Price level definition Channel conflicts

Online, direct, indirect sales

License50%

Services50%

Maintenance 20%

30% - Sales Cost (fix + commission)

Traditional Software Sales

30%-60% to reseller

DIRECT SALES INDIRECT SALES

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

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 ?

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?

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)

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 !!!

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 !

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 !

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…

WHICH CLOUD ? WHAT GARTNER SAYS…

Challengers may be interesting

PRICE DROPS DUE TO COMPETITION & VOLUME…

CEO EMIXISFleet, Asset & mobile

Workforce Management

Lionel AnciauxENTREPRENEUR - COACH

L.ANCIAUX@EMIXIS.COM linkedin.com/in/lionelanciaux/

@lionelanciaux www.hightech-entrepreneurship.com

President SIBSoftware in Brussels

Cluster