PEPM
topic on 2 shows · 2 statements across 2 episodes
the Official SaaStr Podcast
the a16z Podcast
2 statements about PEPM, every show
Plank: Low PEPM SKUs cannot support dedicated sales teams
“If you have 15 products, where you charge five to 10 dollars PEPM for all of them, and you launch a 16th product, where you also charge 10 dollars PEPM, like you can't build the whole sales team around a single SKU, where like the unit economics, you can't set…”
Sean Duffy: Omada charges zero PEPM, relying entirely on outcomes-based pricing
“We don't charge any PEPM, so we regularly sign contracts for like a 100,000 lives. We have no revenue until we get someone in the door, and then we have an enrollment fee that helps come discover something different across, and then it's outcomes-based pricing…”