A thought leader guest post from local serial entrepreneur Ryan Huff:
Cirrus Insight Origin Story - Part 4
In this series, I’ve written about Cirrus Insight’s origin story, starting with the original idea, bringing on my co-founder, and running our beta.
This final post on the origin story is the payoff. Our launch!
Pricing
Before we could launch, we needed to decide on pricing. These were the days before Product Led Growth strategies had been widely promoted, and we weren’t going to do some complex conjoint analysis. But we had been asking our nearly 1,000 beta users for feedback on different pricing strategies. The approach we took was simple:
- Beta users thought of our pricing relative to either Salesforce ($125/user/month) or Google Apps ($5/user/month). We didn’t want to be pegged to Google’s pricing, so we had to position ourselves relative to Salesforce.
- We wanted cash up front for cash flow but didn’t want to scare people away who wanted to pay monthly. We decided to offer both monthly and annual pricing, discounting the annual price enough to entice most people to choose that option.
- A 30-day trial for software in our space was pretty standard, but we felt that the app was simple enough that it didn’t justify an entire month. We offered a 14-day trial.
We decided on $9/user/month or $99/user/year. We probably could/should have priced it higher (e.g., 10% of Salesforce’s price: $12/user/month or $120/user/year). But we also didn’t want people to have to think too hard — buying Cirrus Insight should be an easy decision. It also turned out that it was priced low enough for sales reps to buy it themselves, and we wouldn’t have to worry about long sales cycles.
Launch Promotion
Again, we wanted to recoup our investment as quickly as possible, so we decided to light the fuse with a special launch offer:
- Only for the “first 500” people to sign up. This established some urgency.
- The guaranteed lowest price we would ever offer: 60% off for life. Double down on urgency.
- Only valid on the annual subscription. This got us cash.
Free for Salesforce partners
Another program we established at the outset was to offer Salesforce consulting partners free licenses. I’d seen this strategy work well with Conga. Giving away its product to Salesforce Consulting partners ensured that the people implementing Conga were well-versed with the solution and made it a nearly automatic install for every client of a partner’s. Cirrus Insight didn’t require consultants to...
Read the rest of this article at fractionalfounders.tech...
Cirrus Insight Origin Story series:
Part 1: The "Lightbulb Moment" and identifying the problem
Part 2: Validating the Idea, Scoping the MVP
Part 3: Bringing in help, Running a beta program
Thanks for this guest post to Ryan Huff.
Ryan Huff is a startup founder with over 15 years in B2B SaaS, with experience building and delivering products in CRM, Sales Enablement, Sales Readiness, Natural Language Processing, and e-commerce. Ryan's started and exited 3 companies, including Cirrus Insight which grew to over $12M ARR and over 70 employees. Today, Ryan is a Partner at Fractional Founders, a management consulting firm specializing in helping tech startups and small businesses overcome growth-related challenges.
Photo by Andy Hermawan on Unsplash
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