A check list of 11 questions that we asked ourselves while implementing a 3-tier sales strategy (online sales, direct sales and indirect sales through channel partners).

1. SAAS BILLING – A CHECK LIST
Based on the experience and requirements
specific to Emixis, fleet, asset & mobile
workforce management
emixis.com

2. THE PRODUCT – SOLD ONLINE, DIRECT & INDIRECT
MAIN FEATURES
 Job Scheduling
 Time Tracking
 Job Reporting
 GPS Tracking
OPEN PLATFORM
 Standard ERP-CRM integrations
 Web Services for Integrators
 Deployment and invoicing tools
for Resellers
WORKFORCE MANAGEMENT
 Technical Services
 Construction
 Merchandising
 Services to People
 Services to Business
www.aidoo-mobile.com

3. PRICING – BILLING CHECK LIST
 Check business plan (cashflow awareness)
 SaaS means increased competition
 Price level definition
 Channel conflicts
 Country specific pricing
 Price structure
 Frequency of billing
 Contract duration
 Trial phase
 Invoicing
 Payment methods

4. OUR INITIAL MOTIVATIONS FOR CLOUD - SAAS
Fleet Management
16 € /month

5. ASP & OWN INFRASTRUCTURE
 Business model:
 License
 Setup project
 Hosting
 Example:
 License: 20.000 Euro
 Setup: 6.500 Euro
 Hosting: (/month)
 250 Euro
 162 Euro (support)
 10 Euro / user
33 Euro / month / user
36 months – 50 users

6. … TO SAAS PLATFORM IN THE CLOUD
 Business model:
 SaaS
 Micro Setup project
 Example:
 Setup: 2.500 Euro
 Hosting: (/month)
 25 Euro / user
26 Euro / month / user
36 months – 50 users

7. MOVING TO SAAS – FINANCIAL IMPACT
CROSSING THE CHASM !
Cashflow !

8. PRICING – BILLING CHECK LIST
 Check business plan (cashflow)
 SaaS – Higher competition… price/feature pressure
 Worldwide
 One-click away from competitor
 Price drop = higher volume needed

9. PRICING – BILLING CHECK LIST
 Check business plan (cashflow)
 SaaS – Higher competition… price/feature pressure
 Price level definition
 Cost+, value-based, market

10. PRICING – BILLING CHECK LIST
 Check business plan (cashflow)
 SaaS – Higher competition… price/feature pressure
 Price level definition
 Channel conflicts
 Online, direct, indirect sales
Maintenance 20%
Services
50%
License
50%
30% - Sales Cost (fix + commission)
Traditional
Software Sales
30%-60% to reseller
DIRECT SALES INDIRECT SALES

11. PRICING – BILLING CHECK LIST
 Check business plan (cashflow)
 SaaS – Higher competition… price/feature pressure
 Price level definition
 Channel conflicts
 Online, direct, indirect sales
INDIRECT SALES
 From “box moving” to “services” shift
 Setup, Support services + small commission on
recurring revenues

12. PRICING – BILLING CHECK LIST
 Check business plan (cashflow)
 SaaS – Higher competition… price/feature pressure
 Price level definition
 Channel conflicts
 Country specific pricing
 Local competition level, World Price Index
 Display price ?

13. PRICING – BILLING CHECK LIST
 Check business plan (cashflow)
 SaaS – Higher competition… price/feature pressure
 Price level definition
 Channel conflicts
 Country specific pricing
 Price structure
 1 price, module pricing, /user, /active user, /group…
 Complexity of invoicing…
 Avoid complex pricing (online = simple) !
 Entry-level for free?

14. PRICING – BILLING CHECK LIST
 Check business plan (cashflow)
 SaaS – Higher competition… price/feature pressure
 Price level definition
 Channel conflicts
 Country specific pricing
 Price structure
 Frequency of billing
 Monthly, quarterly, yearly
 With or without longer term commitment
 Per use (transaction, campaign)

15. PRICING – BILLING CHECK LIST
 Check business plan (cashflow)
 SaaS – Higher competition… price/feature pressure
 Price level definition
 Channel conflicts
 Country specific pricing
 Price structure
 Frequency of billing
 Contract duration
 SaaS = Pay per use
 No or limited retainer fee
 SaaS is not Sell & Lease Back !!!

16. PRICING – BILLING CHECK LIST
 Check business plan (cashflow)
 SaaS – Higher competition… price/feature pressure
 Price level definition
 Channel conflicts
 Country specific pricing
 Price structure
 Frequency of billing
 Contract duration
 Trial phase (functional coverage, duration)
 Duration: 1 month, 2 week, 1 week?
 Coverage: ideally all available !

17. PRICING – BILLING CHECK LIST
 Check business plan (cashflow)
 SaaS – Higher competition… price/feature pressure
 Price level definition
 Channel conflicts
 Country specific pricing
 Price structure
 Frequency of billing
 Contract duration
 Trial phase (functional coverage, duration)
 Invoicing
 Don’t forget to check VAT !

18. PRICING – BILLING CHECK LIST
 Check business plan (cashflow)
 SaaS – Higher competition… price/feature pressure
 Price level definition
 Channel conflicts
 Country specific pricing
 Price structure
 Frequency of billing
 Contract duration
 Trial phase (functional coverage, duration)
 Invoicing
 Payment methods
 credit card vs bank transfer…

19. WHICH CLOUD ? WHAT GARTNER SAYS…

Challengers may be interesting

20. PRICE DROPS DUE TO COMPETITION & VOLUME…


21. Lionel Anciaux
ENTREPRENEUR - COACH
CEO EMIXIS
Fleet, Asset & mobile
Workforce Management
President SIB
Software in Brussels
Cluster
L.ANCIAUX@EMIXIS.COM linkedin.com/in/lionelanciaux/
@lionelanciaux www.hightech-entrepreneurship.com