Why Do SaaS Companies With Usage-Based Pricing Grow Faster?

Today we know of HubSpot — the maker of marketing, sales and service software products — as a preeminent public company with a market cap above $17 billion. But HubSpot wasn’t always on the IPO trajectory.

For its first five years in business, HubSpot offered three subscription packages ranging in price from $3,000 to $18,000 per year. The company struggled with poor churn and anemic expansion revenue. Net revenue retention was near 70%, a far cry from the 100%+ that most SaaS companies aim to achieve.

Read the full article: https://techcrunch.com/2021/02/18/why-do-saas-companies-with-usage-based-pricing-grow-faster/

Photo Credits: Unsplash/Daniel Öberg

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