SaaS Billing strategy - a check list
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SAAS BILLING – A CHECK LIST Based on the experience and requirements specific to Emixis, fleet, asset & mobile workforce management emixis.com
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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
[email protected] linkedin.com/in/lionelanciaux/
@lionelanciaux www.hightech-entrepreneurship.com
President SIBSoftware in Brussels
Cluster
