- How to Sell and Price Your SaaS Model Effectively
- Pick Your SaaS Model
- Establish the Value Ladder
- Set Your Pricing
- Sell on the Backend
How to Sell and Price Your SaaS Model Effectively
In this blog post, we will explore the steps you need to take to effectively sell and price your SaaS (Software as a Service) model. We will cover the importance of picking the right SaaS model, setting the value ladder, and finding the right pricing structure to maximize profits.
Pick Your SaaS Model
The first step in selling and pricing your SaaS model is to decide which one you want to sell. In the author’s case, they use a DIY ads model for their own agency. The model starts with a 14-day free trial and then a $497 monthly fee. This approach is appealing to customers who are already running Facebook ads with an agency but are tired of the high costs.
Establish the Value Ladder
The value ladder is a sequence of offers that increases in value as the customer moves up the ladder. In the author’s case, they have three tiers of value in a 12-month cycle:
- DIY ads ($497 per month)
- Done-for-you ads ($497 per month plus a fee for lead nurturing)
- Event marketing ($997 per event plus ad spend)
By offering these different levels of service, the author is able to increase the value for their clients and retain them for longer periods of time.
Set Your Pricing
The question of how to determine your pricing can be a difficult one, but the author suggests using the “pull it out of your butt” method. This means finding a number that you feel comfortable charging and then adjusting it as needed based on the results. In their case, they settled on $497 per month for their DIY ads service.
Sell on the Backend
In addition to selling your SaaS model up front, it’s also important to make sure you’re maximizing profits by selling on the backend. In the author’s case, this means upselling customers to higher-value services and retaining them for longer periods of time through proactive support.
In conclusion, selling and pricing your SaaS model effectively is about finding the right balance between offering value to your customers and maximizing profits for your business. By picking the right model, establishing the value ladder, setting the right pricing, and selling on the backend, you can build a successful and profitable SaaS business.