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slvng | 5 years ago

Not to condone their approach but in the SaaS subscription business, any renewal that yields less revenue than the previous term is treated as churn (for the difference in value).

With churn being of the metrics that affects investors dynamic and thus valuation the most, I understand their desire to eliminate these situations.

Enter negotiations and at the end of the day, vote with your dollars.

discuss

order

busterarm|5 years ago

I wish that along with that a lot of these vendors were happy to start small.

I've found a trend where SaaS vendors will only sell licenses in bundles that are either way less or way more than anyone needs, pushing to start the relationship with you overprovisioned.

Then at renewal time there's pressure to add more licenses and you're still not using all of the ones you have.