A check list of 11 questions that we asked ourselves while implementing a 3-tier sales strategy (online sales, direct sales and indirect sales through channel partners).
1. SAAS BILLING – A CHECK LIST
Based on the experience and requirements
specific to Emixis, fleet, asset & mobile
workforce management
emixis.com
2. THE PRODUCT – SOLD ONLINE, DIRECT & INDIRECT
MAIN FEATURES
Job Scheduling
Time Tracking
Job Reporting
GPS Tracking
OPEN PLATFORM
Standard ERP-CRM integrations
Web Services for Integrators
Deployment and invoicing tools
for Resellers
WORKFORCE MANAGEMENT
Technical Services
Construction
Merchandising
Services to People
Services to Business
www.aidoo-mobile.com
3. PRICING – BILLING CHECK LIST
Check business plan (cashflow awareness)
SaaS means increased competition
Price level definition
Channel conflicts
Country specific pricing
Price structure
Frequency of billing
Contract duration
Trial phase
Invoicing
Payment methods
5. ASP & OWN INFRASTRUCTURE
Business model:
License
Setup project
Hosting
Example:
License: 20.000 Euro
Setup: 6.500 Euro
Hosting: (/month)
250 Euro
162 Euro (support)
10 Euro / user
33 Euro / month / user
36 months – 50 users
6. … TO SAAS PLATFORM IN THE CLOUD
Business model:
SaaS
Micro Setup project
Example:
Setup: 2.500 Euro
Hosting: (/month)
25 Euro / user
26 Euro / month / user
36 months – 50 users
7. MOVING TO SAAS – FINANCIAL IMPACT
CROSSING THE CHASM !
Cashflow !
8. PRICING – BILLING CHECK LIST
Check business plan (cashflow)
SaaS – Higher competition… price/feature pressure
Worldwide
One-click away from competitor
Price drop = higher volume needed
9. PRICING – BILLING CHECK LIST
Check business plan (cashflow)
SaaS – Higher competition… price/feature pressure
Price level definition
Cost+, value-based, market
10. PRICING – BILLING CHECK LIST
Check business plan (cashflow)
SaaS – Higher competition… price/feature pressure
Price level definition
Channel conflicts
Online, direct, indirect sales
Maintenance 20%
Services
50%
License
50%
30% - Sales Cost (fix + commission)
Traditional
Software Sales
30%-60% to reseller
DIRECT SALES INDIRECT SALES
11. PRICING – BILLING CHECK LIST
Check business plan (cashflow)
SaaS – Higher competition… price/feature pressure
Price level definition
Channel conflicts
Online, direct, indirect sales
INDIRECT SALES
From “box moving” to “services” shift
Setup, Support services + small commission on
recurring revenues
12. PRICING – BILLING CHECK LIST
Check business plan (cashflow)
SaaS – Higher competition… price/feature pressure
Price level definition
Channel conflicts
Country specific pricing
Local competition level, World Price Index
Display price ?
13. PRICING – BILLING CHECK LIST
Check business plan (cashflow)
SaaS – Higher competition… price/feature pressure
Price level definition
Channel conflicts
Country specific pricing
Price structure
1 price, module pricing, /user, /active user, /group…
Complexity of invoicing…
Avoid complex pricing (online = simple) !
Entry-level for free?
14. PRICING – BILLING CHECK LIST
Check business plan (cashflow)
SaaS – Higher competition… price/feature pressure
Price level definition
Channel conflicts
Country specific pricing
Price structure
Frequency of billing
Monthly, quarterly, yearly
With or without longer term commitment
Per use (transaction, campaign)
15. PRICING – BILLING CHECK LIST
Check business plan (cashflow)
SaaS – Higher competition… price/feature pressure
Price level definition
Channel conflicts
Country specific pricing
Price structure
Frequency of billing
Contract duration
SaaS = Pay per use
No or limited retainer fee
SaaS is not Sell & Lease Back !!!
16. PRICING – BILLING CHECK LIST
Check business plan (cashflow)
SaaS – Higher competition… price/feature pressure
Price level definition
Channel conflicts
Country specific pricing
Price structure
Frequency of billing
Contract duration
Trial phase (functional coverage, duration)
Duration: 1 month, 2 week, 1 week?
Coverage: ideally all available !
17. PRICING – BILLING CHECK LIST
Check business plan (cashflow)
SaaS – Higher competition… price/feature pressure
Price level definition
Channel conflicts
Country specific pricing
Price structure
Frequency of billing
Contract duration
Trial phase (functional coverage, duration)
Invoicing
Don’t forget to check VAT !
18. PRICING – BILLING CHECK LIST
Check business plan (cashflow)
SaaS – Higher competition… price/feature pressure
Price level definition
Channel conflicts
Country specific pricing
Price structure
Frequency of billing
Contract duration
Trial phase (functional coverage, duration)
Invoicing
Payment methods
credit card vs bank transfer…
19. WHICH CLOUD ? WHAT GARTNER SAYS…
Challengers may be interesting