WBD SaaSometer
To explain the changes B2B selling has gone through over the years, you need to understand some of the fundamentals of pricing, in particular, recurring pricing and the impact of the land and expand model.
The SaaS-o-Meter will help to understand this. In the SaaS-o-Meter, we show how businesses operate along with an arc between two extremes.
On the far left, the buyer pays upfront, as would be the case with internet routers, servers, and perpetual software licenses. On the far right, we live in a "no cure-no pay" world where clients only pay for results, such as an online advertising.
Most relevant during:
PMF phase
GTM Fit phase
Scale phase
Most relevant for:
ACVs < $15K
ACVs $15K-$50K
ACVs > $50K