Licensing Changes

Hoping to get some help from the community here as I just got thrown into a tricky scenario.


My company is going through some changes after being sold off my large org to PE firms. In my opinion, we are now doing things that we should have years ago which is good. But, this creates some challenges.


Example: our old licensing was perpetual with smaller renewals. We are now trying to shift everything to SaaS, per user/month. Part of this is taking away features in certain current licensing and making it only available in new licensing. But, for a few of my customers, I had them bought into our previous journey. I am now faced with a difficult scenario: the journey they wanted is no longer available without a complete overhaul to their licensing. I had no idea of the change so I am now letting them know of changes and a bunch of my deals are now at risk. Some customers think it is a bait and switch play but sellers had no idea these changes would be so abrupt.


Any suggestions on how to approach these conversations would be great.

👑 Sales Strategy
☁️ Software Tech
13
InQ5WeTrust
Arsonist
3
No marketing, mayo isn't an MQL
Is there any change with the services offered as part of the SaaS package? i.e extra training, support - anything to take the sting off really. 

Regardless, tough pill to swallow - had it similar in the past when the industry leader was a one and done. 

Focus on the value even as much as that is an infuriating answer. 
DadFather
Politicker
0
Enterprise Account Executive
Added training, included access to services that are add ons prior. Our old model had so many terms/contracts and renewals. This combines all items to one cost and one term. Trying to push value and our flexibility of transition but it’s tough.
jefe
Arsonist
2
🍁
This is a tough one, is there any grandfathering or something of that nature that could help soften the blow for recent deals or ones that are at a certain stage?

I'm guessing the answer is probably a no as it's all about the $$, so I don't envy you here.

Everyone is pushing SaaS, or a 'SaaS-based model', even when it's not really SaaS.
DadFather
Politicker
1
Enterprise Account Executive
We are doing a bunch of credit type items to lessen the blow, but it is a very difficult conversation for customers expecting to spend $50K and them jumping up 5X that… granted everything for 3 years is included in that vs a small chunk.
jefe
Arsonist
1
🍁
Oof, yea that might soften it a bit, but I can still understand the reticence of your prospects (as I'm sure you do as well).

Credibility and trust are paramount in these types of sales cycles, and it sounds like that's taken a pretty serious hit.

These transitions are hard and I don't envy you.

Have you worked with your manager/director/VP at all on this? Or got your VP or another executive involved in talking with the prospects at all?
DadFather
Politicker
1
Enterprise Account Executive
Yea, one thing i did was bring it to them immediately and essentially admit “this is news to me but I want to get ahead of it for you to work through a plan.” I’ve conceded that any deal this FY is done but can be saved for next year hopefully. (Hopefully my Vp understands lol)
jefe
Arsonist
0
🍁
Keeping my fingers crossed for you!
paddy
WR Officer
2
Director of Business Development
There should probably be a BYOL (Bring Your Own License) option if they want to shift to the SaaS model. Seems like the most equitable for the customer. Maybe bring this up if it hasn't been discussed?
Diablo
Politicker
1
Sr. AE
If you think you will lose bunch of good deals (convo of which took place before this new transition), why not talk to your Manager to see if you can customize the package as per the customers' req.
DadFather
Politicker
0
Enterprise Account Executive
That’s what I am trying to do in the background but unsuccessful right now. The plan it flexibility will be in the rollout of the new licensing. In form of lower charges up front as they roll into it.
BeatCancer
Fire Starter
1
Account Executive
Get them to buy into the new story. We got bought by PE, which means story... "THIS IS WHATS IN IT FOR YOU"
DadFather
Politicker
1
Enterprise Account Executive
I wish… these guys have known me for years and realize the solution isn’t changing THAT much. Plus, the procurement guy is a stubborn old guy so any changes are tough to get by
BeatCancer
Fire Starter
1
Account Executive
I think be honest and transparent as fast as possible with them.
Even advise their alternatives. I think they will respect your honesty, and (SW3) some will, some wont and so what.
buckets1
Politicker
1
AE
How sticky is your solution i.e. how difficult would it be for the customer to change to a new provider? My company went through some licensing changes — not as extreme as yours. We are fairly sticky so I usually just explain that I don’t agree with the changes either — but they happened way above my pay grade. Admitting you don’t agree with everything your company does seems to resonate.
DadFather
Politicker
1
Enterprise Account Executive
That’s an angle I played today. We are very sticky and that process would take some time to replace. All in all, this licensing will help make things easier for them, it’s just the initial shock/cost that i am managing.
buckets1
Politicker
1
AE
Oof yep the sticker shock can be a difficult conversation. I am numb to it at this point more than a year into the changes. Good luck! Not fun but hopefully they are paying you well for managing those conversations.
Blackwargreymon
Politicker
1
MDR
I'm guessing the answer is probably a no as it's all about the $$, so I don't envy you here.
Clashingsoulsspell
Politicker
1
ISR
I'm guessing the answer is probably a no as it's all about the $$, so I don't envy you here.
LordBusiness
Politicker
0
Chief Revenue Officer
Was there any press about the PE acquisition? For the "bait and switch" folks you can likely show them the press and that should connect with the "mid pitch" changes.  
MR.StretchISR
Politicker
0
ISR
If you think you will lose bunch of good deals (convo of which took place before this new transition), why not talk to your Manager to see if you can customize the package as per the customers' req.
Mr.Floaty
Politicker
0
BDR
I usually tell them I make mad money, sleep in, have fun meetings with clients, take runs during the day, and call it a day at 4pm.
Cyberjarre
Politicker
0
BDR
Normies think that if you're in sales you must either work at the mall, be a telemarketer, or used car salesman.
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