Everything you need to move upmarket

The 3 key elements to have in place before going upmarket In our unique position of powering the checkouts of thousands of SaaS companies, we’ve noticed that there are 3 tactical elements to have in place before selling to larger organizations:

Larger customers have different requirements and you’ll find that your own product isn’t the only one that needs attention - you’ll need to adapt the kind of products your company uses, too.

Bigger customers will want to pay in a different way to the smaller companies you’re used to serving. With larger amounts of money coming your way, it’s very unlikely an enterprise customer will want to put it all on a credit card.

Big companies are more likely to want to pay via wire transfer - they want to pay into a bank account that feels local to them over a payment network they’re used to, with the ability to tailor their pricing, raise a PO, track multiple invoices and upsell and renew licenses with ease.

You’ll need Sales and Success teams in preparation for selling to larger customers. A sales team will support the process of acquiring bigger customers, while a Success team is important for onboarding your new customers, retaining them and upselling to them.

Find out how other companies have moved upmarket

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Getting billing right is crucial to sell to larger businesses When it comes to providing a self-service billing model there are many to choose from. That’s why it’s so important to determine your value metric to ensure you’re aligning the value your product is delivering with how the business is paying.

The 8 most popular billing models in SaaS are:

1. Usage-Based Billing / Pay As You GoCustomers only pay for what they use through a service.

2. Tiered BillingBilling options are offered in different tiers, with each tier employing a usage cap.

3. Per-Seat Billing The price-per-head option when your customers value the number of people with access to your product or service.

4. Freemium Offering a free, basic version of your product or service with the incentive to upgrade.

5. The Dutch Model / The Sketch Model Your customer purchases your product or service for a full year of operation. After the year is up, they can either pay for another year of upgrades or keep their version as it is with no further upgrades.

6. Release-Based BillingYour customer is only charged when there’s been a release.

7. Feature-Based Billing The purchasing of an extension to a freemium model or on top of a tiered plan.

8. The Hybrid Billing ModelOffering both one-off payments and subscription plans to attract different customer personas.

Learn more about these billing models

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Building your product for
teams & enterprise

Building your product for teams:

Nearly all SaaS companies want to sell multiple seats per account so that their product becomes an integral part of a team’s workflow.

Here’s how to get started:

1. In-build the potential for virality
2. Teams need access management and admin roles
3. The ability to collaborate is important where possible
4. You need to sell how your customer wants to buy

It’s as simple as it sounds, but without looking into how your target market wants to buy your product, you could be waving goodbye to business. Look at your current pricing and ask yourself if your subscription billing model might be limiting your reach.

Building your product for enterprise:

1. You can use your product to approach bigger enterprise businesses. Through what’s known as a ‘land and expand’ sales model, it’s possible to upsell a prosumer and essentially infiltrate a company through this one seat, turning a B2C transaction into B2B deal with a large company.
2. Offer advanced features
3. Compliance is key

Enterprise customers will need to ensure your business is compliant with a range of laws and regulations - like GDPR, financial compliance, and even anti-slavery and anti-bribery pledges. It’s also important to ensure you’re on top of financial compliance, taking into consideration different invoice requirements globally, the need to generate compliant invoices for enterprise and ensuring your company is correctly handling sales tax.

Learn more about building your product for teams & enterprise

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How Framer moved from $15/month licenses to $100,000+ enterprise deals Design and prototyping platform Framer had hundreds of users from potential clients like Netflix, Tinder and MailChimp. They were in prime position to move upmarket… but they needed a SaaS commerce platform to make their move into enterprise seamless.

With Paddle’s guidance, Framer were able to implement and iterate on a new per-seat billing model with individual, team and invoiced enterprise plans - all without tax, compliance, support and accounting to deal with.

Framer’s team found a strategy to roll up individual purchases into enterprise deals leading to their $8M Series A. By building out their sales team around the new strategy, they accelerated to a $24M Series B just 12 months later.

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