Imagine for a moment that you are working at the Average Charlie’s Cheese Sandwich Factory. At night you go home and cook dinner for two. You eat the other serving for lunch tomorrow.
So you take the initiative to make your life better. You decide to start a small business of your own, and to save overhead and startup costs, you start a SaaS company. Life seems pretty sweet.
But after a few weeks of operation, you haven’t really struck it rich. At first you have very few customers and you’re just sitting there in front of your computer. Life is ok, but it could be better.
But then all of a sudden you have an idea. You’ll run a pricing promotion for the month and give a segment of your target market a big discount to stir up some sales. You think about how to do it, and the difficult challenges you may face on this journey. You accept the challenge.
So you use your recurring billing system’s awesome promotions platform to craft a very special discount, just for cake-loving, hat-wearing cat ladies (your target market). You decide to give them 50% off your regular monthly rate if they pay up front for a full year of service. You take a moment to celebrate this idea.
At the end of the month, you tally up your new users. Revenue has doubled. New signups have tripled.
So now you have enough money to quit the stupid dead-end job at the cheese sandwich factory. You even have leftover money at the end of the month to spend on shoes that don’t look like grandpa’s hand-me-downs.
Your brand new girlfriend really thinks you’re swell. Good work!
Well almost everything – except the cheese sandwich factory, the lack of customers, and the shoes, and some other details.
In reality, last month we ran a pricing promotion called Summer of Startups that gave startup companies the opportunity to pay up front for a year of service at a deeply discounted rate. Our revenue doubled (actually more than doubled) for the month, and thanks to the increased traffic, our signups went through the roof as well.
So, in summary, Pricing Promotions Work Very Well for SaaS Companies.
You should use our promotions system to run your own.
Images via KYM