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Is Your SaaS Sales Model in the Red?
Imagine your SaaS sales strategy model on a graph with the Y-axis being price of service and the X-axis being complexity. Is it a self-service model, a transactional model, or an enterprise model? Knowing your SaaS sales strategy model builds the basis for determining the right levers to adjust.
Ray Grieselhuber, co-founder and CEO of GinzaMetrics, breaks down how to cater your sales and marketing to your sales model, keep your cash flow consistent, and stay out of the “startup graveyard.”
This Week’s Guest
“The lower right quadrant is where you don’t want to be, which is called ‘the startup graveyard’… nine times out of ten, when I look at other SaaS startups out there, the number one problem I see happening is they’re just simply not charging enough money.”— Ray Grieselhuber, CEO of GinzaMetrics
Key Takeaways
* Imagine your sales strategy on a graph: The Y-axis is price, and the X-axis is complexity. [3:00]
* Your SaaS model will typically fall under one of these categories:
* Self-Service Model [4:00]
* Transactional Model [4:35]
* Enterprise Model [5:00]
* Whichever model you choose, make sure you don’t end up in “the startup graveyard.” [6:00]
* The right levers to pull varies from model to model. For example, the enterprise model demands a sophisticated sales force, while the self-service puts more emphasis on web marketing. [9:15]
* Annual revenue models help build predictability and stability in your cash flow. [10:45]
Listen Here
Labcast 124: Get Your SaaS Sales and Pricing Strategy Right with Ray Grieselhuber
Transcript
Kevin: Hi, everyone, and welcome to this edition of Labcast. I’m your host, Kevin Cain, and today I’m joined by Ray Grieselhuber, to talk about how to get your SaaS sales and marketing pricing strategy right.
If you don’t know Ray, he’s the CEO and Co-Founder of Ginzametrics. Ray has over seven years experience in organic search, social, and paid search marketing, and has helped both Fortune 500 companies and start-ups alike drive growth, increase revenue, and expand to global markets.
Hey, Ray, welcome to Labcast. Thanks so much for joining me today. How are you doing?
Ray: Very well, thanks. Thanks for having me.
Kevin: It’s great, you know, it’s interesting to have someone like yourself, with a background in SEO, and really an SEO expert, here to talk to us about something actually quite different today, in terms of putting your CEO hat on and talking a little bit about SaaS companies, and sort of how their sales and pricing strategies work.
Ray: Yes, I mean aside from online marketing, and SEO, this is probably one of my favorite topics, so I’m looking forward to it and happy to be here.
Kevin: Great. Well, you know, one of the things I wanted to kind of kick off with is this whole discussion that you’ve kind of led on your blog about this idea of there being Four Horsemen of SaaS, which is basically, you know, the four different things that are going to kill a SaaS start-up.
Ray: Yes.
Kevin: Can you kind of describe what you mean by that, and what those things are?
Ray: Yes, sure. And I guess I would preface it by saying that the Four Horseme...
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Imagine your SaaS sales strategy model on a graph with the Y-axis being price of service and the X-axis being complexity. Is it a self-service model, a transactional model, or an enterprise model? Knowing your SaaS sales strategy model builds the basis for determining the right levers to adjust.
Ray Grieselhuber, co-founder and CEO of GinzaMetrics, breaks down how to cater your sales and marketing to your sales model, keep your cash flow consistent, and stay out of the “startup graveyard.”
This Week’s Guest
“The lower right quadrant is where you don’t want to be, which is called ‘the startup graveyard’… nine times out of ten, when I look at other SaaS startups out there, the number one problem I see happening is they’re just simply not charging enough money.”— Ray Grieselhuber, CEO of GinzaMetrics
Key Takeaways
* Imagine your sales strategy on a graph: The Y-axis is price, and the X-axis is complexity. [3:00]
* Your SaaS model will typically fall under one of these categories:
* Self-Service Model [4:00]
* Transactional Model [4:35]
* Enterprise Model [5:00]
* Whichever model you choose, make sure you don’t end up in “the startup graveyard.” [6:00]
* The right levers to pull varies from model to model. For example, the enterprise model demands a sophisticated sales force, while the self-service puts more emphasis on web marketing. [9:15]
* Annual revenue models help build predictability and stability in your cash flow. [10:45]
Listen Here
Labcast 124: Get Your SaaS Sales and Pricing Strategy Right with Ray Grieselhuber
Transcript
Kevin: Hi, everyone, and welcome to this edition of Labcast. I’m your host, Kevin Cain, and today I’m joined by Ray Grieselhuber, to talk about how to get your SaaS sales and marketing pricing strategy right.
If you don’t know Ray, he’s the CEO and Co-Founder of Ginzametrics. Ray has over seven years experience in organic search, social, and paid search marketing, and has helped both Fortune 500 companies and start-ups alike drive growth, increase revenue, and expand to global markets.
Hey, Ray, welcome to Labcast. Thanks so much for joining me today. How are you doing?
Ray: Very well, thanks. Thanks for having me.
Kevin: It’s great, you know, it’s interesting to have someone like yourself, with a background in SEO, and really an SEO expert, here to talk to us about something actually quite different today, in terms of putting your CEO hat on and talking a little bit about SaaS companies, and sort of how their sales and pricing strategies work.
Ray: Yes, I mean aside from online marketing, and SEO, this is probably one of my favorite topics, so I’m looking forward to it and happy to be here.
Kevin: Great. Well, you know, one of the things I wanted to kind of kick off with is this whole discussion that you’ve kind of led on your blog about this idea of there being Four Horsemen of SaaS, which is basically, you know, the four different things that are going to kill a SaaS start-up.
Ray: Yes.
Kevin: Can you kind of describe what you mean by that, and what those things are?
Ray: Yes, sure. And I guess I would preface it by saying that the Four Horseme...