Zbo

Account Executive

Creative Ways to Structure a SaaS Contract

Hi All!

I'm looking for help structuring a sales contract with Ramped-Billing for a SaaS deal that grows in value over time based on annual usage.

We are a live-video company and we sell Live Annual Minutes (LAM). My prospective customer could buy anywhere from 1,200,000 LAMs for $10,800 and 48,000,000 LAMs for $336,000.

He wants to start small, and then grow over time as they use more minutes.

Any creative ways I can structure a Sales Contract that would encourage the prospect to purchase more LAMs upfront?

Attached is our pricing matrix.

Files Attached

2022-10-13_21-21-44.jpg

👑 Sales Strategy

📈 Closing

9 comments

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FinanceEngineer

Politicker

Sr Director, sales and partnerships

The only way I can think of is discounting it, or creating a multi-year contract with built in increases.

CuriousFox

WR Officer

🦊

I was thinking along the lines of the second part of your answer.

jefe

Arsonist

🍁

Built-in increases are probably the way here.

Sunbunny31

Politicker

Sr Sales Executive 🐰

How are you comped? ARR, total deal size, ARR on out year?

Zbo

OG Sales Savage

Account Executive

Great question. 12% of TCV

Sunbunny31

Politicker

Sr Sales Executive 🐰

Right, so any growth will count for you.

I've seen built in ramps - each year a bump up in usage/value. The problem I've seen arise from this is inevitably, the customer doesn't meet those targets and by year 3, they aren't even at the year 2 number.

However, if you gave them an overall favorable rate on volume so that somehow your tiers are still a good deal in comparison to "list", you can feel good that you didn't take advantage of them, while maximizing your sale.

I hope this helps.

SADNESSLieutenant

Politicker

Officer of ♥️

Discount for more lams, with the price set to increase in the future. IE 10$ for 10 lams today or 12$ for 15 lams today. In the future it will be 13$ for those same 15. As well if you close a 4 year deal instead of a 1 year, we discount the price 33%

Kosta_Konfucius

Politicker

Sales Rep

Like this!

SoccerandSales

Big Shot

Account Executive

Can you do a multi-year?

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Zbo

Creative Ways to Structure a SaaS Contract

Files Attached

9 comments

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