Peter Coppinger, CEO of Teamwork.com, explains why the SaaS company shifted its entire pricing architecture from flat-rate project bundles to a per-seat model.
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“And what we've just done last month is we've changed all our self-service pricing tiers to the per seed model. And the reason we've done that is for a couple of reasons. It's First of all, we weren't capturing enough value from the mid market. The second thing is our customers were actually telling us that they, our potential customers were going to our competitors because they perceived our competitors as cheaper, even though they weren't.”
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More from Peter Coppinger
Opinion
Coppinger: Teamwork Was Built Because Basecamp Sucks
“Yeah, well, the reason we made this product is because Basecamp sucks.”
Peter CoppingerMar 3, 2018▶ 1:32952 How Teamwork.com Got 20,000 Customers and $18m in ARR With No Funding
AssertionNot checkable as stated
Coppinger: Walt Disney was Teamwork's first enterprise customer after stealth usage
“Our first enterprise customer was actually Walt Disney. We'd been thinking about doing enterprise for a couple of years and we got a phone call out of the blue from Walt Disney saying we've been using your product in stealth for two years.”
Peter CoppingerMar 3, 2018▶ 6:50952 How Teamwork.com Got 20,000 Customers and $18m in ARR With No Funding
Disclosure
Coppinger: Teamwork's enterprise churn is near 0% after 18 months
“And then for the enterprise guys, we've actually in the history of enterprise in the year and a half of doing enterprise, we've only lost one enterprise customer. So our churn for enterprise is pretty close to zero percent.”
Peter CoppingerMar 3, 2018▶ 9:56952 How Teamwork.com Got 20,000 Customers and $18m in ARR With No Funding
Disclosure
Coppinger: Teamwork.com is grandfathering legacy pricing for three years
“What we've done for our existing customers is we've chosen to grandfather them for three years, which is pretty unheard of in the industry, and then we're going to look after those guys as they transition from the old model over to the per seat model.”
Peter CoppingerMar 3, 2018▶ 10:34952 How Teamwork.com Got 20,000 Customers and $18m in ARR With No Funding
Disclosure
Coppinger: Software directory listings currently outperform Google AdWords for Teamwork
“Getting listed on certain websites is working better for us than Google AdWords. So we're slowly doubling our how much money we're putting into those.”
Peter CoppingerMar 3, 2018▶ 12:33952 How Teamwork.com Got 20,000 Customers and $18m in ARR With No Funding
AssertionNot checkable as stated
Coppinger: Teamwork sees 3% gross and 0.5% net monthly self-serve churn
“For our self-service guys we have about three percent churn per month but the net churn, For across all our self-service guys is only not .5%. That's net revenue.”
Peter CoppingerMar 3, 2018▶ 13:48952 How Teamwork.com Got 20,000 Customers and $18m in ARR With No Funding
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