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Nick Matteucci

 
Nick Matteucci is the co-founder of VCSonline for web-based project management and is an accomplished speaker on the future of virtual teams.

Mr. Matteucci most recently sat on the board of directors for the largest IS/IT project management organization in the world (PMI ISSIG) as their Chief Technology Officer and blogs on the topic of virtual teams. 

Mr. Matteucci enjoys running, all things automotive, and spending time with his wife and their three young children in St. Louis, Missouri.


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PMS - Project Management Software

Selecting the best pricing model for Software-as-a-Service (SaaS)

Mar 23

Written by: Nick Matteucci
Wednesday, March 23, 2011 1:49 PM

I was recently asked the question, "what is the best pricing model for a SaaS provider?".

As the co-founder of an 11 year old SaaS project management software company I felt I had some insight.

First of all let me say this.  This question has 2 very different answers when you consider "what's best for the customer?" or "what's best for the offering company?"

:)

At VCSonline we decided early on to brainstorm all of the barriers to a customer getting started with our software including:

• SaaS environment with data outside their datacenter
• Cost per month
• Commitment and Risk of getting stuck with the wrong package

We then set out to alleviate those risks and I can tell you – to a customer – they love our billing approach and see it as a major differentiation vs. how @Task, Daptiv, Innotas, Microsoft EPM (EPMLive), and other SaaS resource management software, portfolio management software, and project management software providers operate.

Basically we have two account types.  A $10/month (time entry, work updates, issues, risks, changes, and full document management) and a $30/month (Microsoft Project integration, full organization dashboards, resource management tools, etc.).  The $10/month covers 90% of our customer accounts (our competitors cheapest accounts start at $30/month and they only allow timesheets for the most part).

Here is were the really good part comes in.  All customers are month to month with NO commitments for the future.  Cancel at any time no questions asked.  Our competitors think we are crazy (I know I have been interviewing many that are getting laid off daily).  The bottom line is – our customers don’t want to quit every month.  This keeps the pressure on us to deliver value, security, and performance every month or we can get fired.  In the end it builds a more loyal and trusting customer base.

It takes a long time to realize how valuable your products/services are and that your customers won't fire you when you every single month.  Gaining the confidence in yourself and your business to trust a pricing model that is unorthodox is one of the hardest things.

Best Regards,

Nick Matteucci, Co-Founder VCSonline.com
VPMi = Simple + Sensible + Secure SaaS Resource & Project Management Software
LinkedIn ID = nmatteucci | Email = nmatteucci

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