Charging SaaS fees improves enterprise customer stickiness more than free access
Abel Zhao · Bootstrapped to $35m Revenue, $15m recurring, $20m One Time Connecting Smart cities in Japan with local farmers · Jan 20, 2023 · at 10:41
Abel Zhao, CEO of Free D Group, explains why the company charges a subscription fee in addition to transaction take rates and revenue sharing.
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“Well, because actually when you're creating a SaaS feed that actually creates from the customer perspective, you don't charge them anything, actually that lowered the stickiness and then also lower the loyalty we find. And then, so when you charge them anything, it becomes actually, they treat the platform more you know, valuable, actually take it more seriously because they put more efforts into it because actually we, when we actually generate that revenue, the GMV, the take rates, the revenue, the profit that we get from that, we actually do a profit sharing with our partners. So therefore they actually ended up actually probably making more money by using our platforms. But if you don't charge that, that actually the engagement from the customer side, it can be, could be lowered.”
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