Insight certainty 4/5 debate potential 2/5

Lieberman: Overly complicated SaaS pricing hinders sales and leaves revenue behind

Seth Lieberman · 898 SaaS: SnapApp Lands Amazon as Customer, Passes $8m in ARR · Jan 8, 2018 · at 11:09

SnapApp CEO Seth Lieberman discusses the trade-offs of multi-axis enterprise pricing models with Nathan Latka.

0:00 / 0:40exact quote · 40.9s
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“The flip side of it though, is the more complicated you make it, the harder you make it to sell. And so we, you know, like any SaaS company, we try and walk that line, which is how do we leave ourselves enough variability that we can get the right amount of money from big customers who get a lot of value and should pay us fairly without, you know, I've had a top 10, fortune 10 customers say, this is too complicated. We're not going to buy this way. Let me tell you how we're going to buy. I don't give a shit what you do. Go back and reprice everything you do against this model. Okay. You're a fortune 10 company. That's fine. We'll, we'll do that. We'll do that. But like, so if it's too complicated, the sales team will stumble and they'll leave dollars on the table as well.”

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Prediction Not checkable as stated
SnapApp predicts higher customer churn than established SaaS verticals
“I think we as a company will always have a higher churn rate on the customer count over the next five years than an established vertical, right? Like, you know, a lot of the, you know, CRM, marketing automation, analytics, those guys, their churn rates should …”
Seth Lieberman Jan 8, 2018 ▶ 6:52 898 SaaS: SnapApp Lands Amazon as Customer, Passes $8m in ARR
Disclosure
Amazon is a paying SnapApp customer, while HubSpot is not
“You know, so if HubSpot buys a 20,000 dollar license from us, and Amazon, and they're not a customer, Amazon is a customer actually, and Amazon buys a twenty million dollar, our CAC is still the same, right?”
Seth Lieberman Jan 8, 2018 ▶ 16:16 898 SaaS: SnapApp Lands Amazon as Customer, Passes $8m in ARR
Disclosure
SnapApp is approaching $10 million in annual recurring revenue
“Yeah, we're getting to 10. We've got a little bit of work to do, but I keep hearing the gong ring over in the sales bullpen.”
Seth Lieberman Jan 8, 2018 ▶ 17:36 898 SaaS: SnapApp Lands Amazon as Customer, Passes $8m in ARR
Assertion Not checkable as stated
SnapApp nears 300 customers averaging $30,000 annually with six-figure contracts
“Our average customer these days starts about 30 grand a year. Our enterprises can be in the six figures. We don't have any seven figure customers yet. But that's typically where they are. We've got, we're closing in on about 300 customers, give or take.”
Seth Lieberman Jan 8, 2018 ▶ 5:23 898 SaaS: SnapApp Lands Amazon as Customer, Passes $8m in ARR
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