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John Gannon

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Pricing Plans and Viral Acquisition for SaaS Enterprises | Josh Hannah

A Scalable Pricing Model from JBoss

Your pricing is, in part, a function of your increasing costs, but also a function of your increasing value, and segmenting the customers who can afford to pay a lot from those who can’t. JBoss was able to transform their business when they focused on putting the right scalable pricing model in place. They ended up creating a multi-dimensional scaling model that included things like number of servers, response time for support calls, number of named support people at their end, number of support locations, and which set of JBoss products they were using, in order to successfully get some customers to pay $1M while others were paying just $10K.

via Pricing Plans and Viral Acquisition for SaaS enterprises | Josh Hannah.

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John Gannon is an Associate at L Capital Partners, a $165-million fund looking to advance companies with the potential to take groundbreaking products to market. He blogs at http://johngannonblog.com. Prior to joining L Capital Partners, John worked with Highland Capital Partners and Chart Venture Partners to identify and evaluate new opportunities in the enterprise IT sector. He also served as a consultant advising startup companies on business development, product strategy and venture capital fundraising. He currently sit on the board of advisers of VAlign Software.