What would be the best offer you give for your new SaaS on launch?
Mukhil Maran
12 replies
You're strategizing an offer plan for your launch.What would you give? A complete free version or a certain percentage of discount or a LTD? Please comment if there is any other too..
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Yogesh Subramanian@yogesh_subramanian
A free trial for the users or a free plan with limited access.
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Definitely a limited free plan unless you have a really polished and validated product that you know users will fight over ;).
The limited free plan is also a good idea to check if users are willing to pay for extra features.
There are many. But I just wanted to share something that's not widely known — a step-up discount, as I call it.
It works like this. For the first month or so, let's say you are giving 5% of discount. And your customers will get 10% off or something for their second bill cycle. This would continue until the cap you set. For eg, it could be 25%.
Positives:
1) Higher retention.
2) Extended runway to better the product.
Negatives:
1) Tricky to execute from a functional level.
2) Numbers have to be carefully worked out.
@senthil99nathan Woww! Good one! Giving the users a feel of accomplishment.. Like Google Pay rewards the users for usage - like sending money to a friend, paying online bills using Google pay.
Never LTD, that make your LTV drop to zero right after.
I'm a big fan of big discounts on yealy plans. It shows commitment from the buyer and still helps them save a lot of money.
Imagine you have a Monthly price of 100$ that costs 1100$ if paid per year.
Instead of making it 10$ monthly make it 600$ Yearly. It will get you better users because the commitment from 10$ to 600$ is completely different and it's still a huge sales price for the user because they save much more.
You do need to be careful to understand if your LTV/CAC makes sense with these deals, I'm just talking generics here, and each case will be different ;)
@nuno_ms_reis Makes complete sense, Nuno! If everything favors, the initial loads of discounted money can be well-used to shape up the product. Agreed!
@mukhil_maran Yes, if you think of it, lots of people are willing to give 20% of their company for an investment.
I say, make your customers, your investors, give them a discount and get commitment from them and get the runway you need to work on your product to satisfy them ;)
Hey! We are live on Product Hunt now.
Ours is to create a tour with us for $1.
If I were to do it again I would have done a free trial, I didn't because we would miss the launch day to add that functionality in but I think that would have made a difference.