The SaaS Pricing Fundamentals I Used To Become a Millionaire

SaaS pricing can be tricky. I used these SaaS pricing fundamentals to become a millionaire. Learning how to price your product will give you options when moving forward with your SaaS pricing strategy.

Watch more videos like this 👇

Welcome to MicroConf - Where Independent SaaS Founders Launch, Meet, Learn, and Grow! MicroConf is the world’s most trusted community for bootstrapped SaaS founders.

MicroConf is a community of SaaS founders that brings together bootstrapped and independently-funded B2B SaaS companies who are not looking to chase “unicorn status'' or venture capital.

We provide SaaS training, education and networking opportunities for other founders who are pre-product, focused on scaling their business, and looking for an exit strategy.

MicroConf began more than a decade ago. Since then, we’ve hosted more than 25 events with nearly 200 speakers, helped thousands of attendees, and impacted tens of thousands more through our videos and online community.

Ready to take your SaaS startup to the next level? Check these out:

Let’s Connect...

MicroConf 2020 Headline Partners
► Stripe
► Basecamp

[GrowWithWill]

In my opinion every SaaS company focuses on marketing, innovation, and public relations, but pricing strategy, which is a key part of making money, is often overlooked.

[IELTSRyan]

Amazing talk. Thank you for sharing this, Rob.

[Martinit]

I was once part of a sales force that had do execute a switch from a perpetual (one-time payment) license to SaaS with an annual payment plan. What a monumental pain it was. And we probably lost 1/3 of paying customers and it was at least a quarter of not closing new customers. But it improved revenue a lot.

[Greg_Chase]

Time 25:00 thereabouts, it's pretty wild to see the much lower churn for the customer paying so much more.

I wonder if it's because the higher paying customer was initially willing to pay more, because they extract much more value than the low-pay customers. And because they get more, because they perceive much higher utility/value, like most things in life, "we don't enjoy giving up the things we treasure" - they do not leave readily.

In our rental property portfolio, we never compete on price; we set rents well above the median and raise them regularly. Tenants stay and stay. So the higher price filters out the lower-intent customer, apparently.

In the early days, when we were afraid about making our mortgage payments, we always competed on price. Wow, the turnover. Price is a signal.

[MrJinwright]

Good stuff Rob. Also, I peeped the VladTV strategy too.

[ChristopherPreston-nzim]

Thank you for creating the video - likes Unequivocally !!!!

[eduardoPicazzo]

Hey Rob. What do you think about raising prices despite not having any paying customers yet?

I'm in-between either raising prices, killing the free tier or limiting the free tier and raise the prices... I currently have about 70 people on my free tier and I'm pretty limited in terms of software as to how to monetize my platform... So I thought combining marketing with a pricing raise would be the best (and cheapest) approach given the limitations. I kinda want to pull the trigger on this cause I feel customers are too complacent with free tiers while you on the other side are burning through cash and sleep to keep things afloat.

[boonedocksfl]

Are you available for consulting for a 10 year old SaaS niche for subscription pricing? We haven’t changed it since the start.

[El_Diablo_]

6:48 growing your customers and get net negative churn, you’re going crazy

8:30 problem with one price. Some people won’t balk at $50-100 per month

[reecebrauer]

Hey Rob, amazing content as usual. I'm about to launch a SAAS but i'm not sure how i should price it. To keep it short, my SAAS's value comes from the people within the network of the platform itself. How do I charge people, given that there needs to be active network effects before people see the value? What approach would you take in the beginning? Thank you

[mshai]

Hi Rob, do you do mentorship on platforms like GrowthMentor or its equivalent?

[greendsnow]

It's impossible to find the true price for Sass in non-convertible currency-high inflation economies.

[nathangrog]

Cmon microconf/rob release all the video of conf.