Consider price v no. of customers required to hit MRR goals
e.g. £10,000/month requires:
- 100 customers at £100/month
- 40 customers at £250/month
- 20 customers at £500/month
Use Enterprise/Contact Us plan to find value larger clients will pay.
Almost all (?) $100m SaaS businesses charge more than $5k/year or less than $500/year.
Some key points from the Twitter thread above:
- Avoid the “dead zone” between $500 & $5000
- Going after “whales” is easier, then trying to catch a gazillion “mosquitos”.
- companies often see inexpensive software as being not “enterprise-grade”
- it’s too expensive for the seller to go through procurement malarkey for every thousand dollars or so
- Re Clickfunnels they have “relied (smartly) on professional services/selling training to jump cash gap issues and get payback basically on day 1”
- (1) outbound sales rep based, hands-on – economically viable when MMR is high enough to cover the costs, hence a cut off ~$5000. (2) automated inbound web-based model no sales staff – only works for price <$500 bc businesses won’t pay more without human touch. Hence the gap.