Sales Strategy · Business Strategy

For ISV's deploying on the cloud, why would you ever sell a 1 year subscription?

Bob Fucci Sales and Revenue Growth, Strategy, Advisor, Speaker

February 1st, 2016

Defend the value of your solution and sell 2 and 3 year subscriptions (with a fair discount).  Think about client success.  Will clients get the full value and use of your solution in 12 months?  What happens if something wobbles in the implementation?  Give your team time to react, to address issues and leverage a longer term agreement to treat those issues as distant memories.  Allow the client to say "we may have gotten off to a slow start, but we recovered and are happy with the solution."

Close the order, make the client successful, find the right agreement term, balance the short term and long term objectives, become a trusted partner, the renewals will follow as a natural course of doing business.

Karl Schulmeisters Founder ExStreamVR

February 2nd, 2016

Because with 6-12 mos RTW cycles where we add a lot of value, we want to be able to tier the pricing. 

We offer an "enterprise subscription" that is a 4 year commitment model with deeply discounted 2-4th year costs  that INCLUDES all the upgrades.

This gives us the option to sell three pricing levels

  1. monthly with an annual discount if you sign up for 12 mos
  2. annual discount but which does not entitle you to new functions in the next year
  3. a 4 year commitment with a 40% discount in years 2,3 and 4

Bert Sandie Director - Game Development Excellence

February 1st, 2016

There are lots of emerging digital subscription models appearing. There are business models that are aimed at individual consumers and businesses. Many of the subscription services aimed at individuals have monthly, 90-day and yearly terms. A few successful examples: Microsoft Xbox Live, Netflix, Activision World of Warcraft, Spotify, etc.

Randar Puust Technical co-founder looking for a great idea to build

February 1st, 2016

Sometimes, it can make the difference of whether it is a capital or operational expenditure.  If you are selling to the enterprise, they may have space in CapEx, but not in Opex.  So it can make the purchasing process simpler.