FounderCEO

A BLOG ABOUT STARTUP STRATEGY & FINANCE

Pricing sounds deceptively simple but is surprisingly complex to get ‘right’. Your pricing strategy can augment your sales, or it can devour the very foundation your business is built on. The good news is there are various pricing strategies available for all kinds of products, businesses & markets. This is also the bad news.

Understand Business Priorities

The CEO needs to understand what is it that the business wants to accomplish, whether it is just the profits or anything else. If it is the mar...

There is a growing acceptance of why recurring revenue is special. Founders now understand that not all revenue is created equal. The more predictable the revenue, the more valuable it becomes. In VC parlance, it is not a little bit better than non-recurring models, but 10x better. Many VC firms are adding weight to recurring models with high gross margins as evaluation criteria, along with market & team.

What makes this business model so valuable is that you can invest more of your time towards...

Many organizations face a difficult time in defining a compensation plan for sales people that aligns the interests of the company and the people. Even more so, when it’s a startup trying to work on subscription revenue model.

The basic objective of any sales compensation plan is to align the sales behavior with the company objectives. To get the best results, let’s find out what these objectives could be.

Prime objectives:

Winning new accounts.

Booking new recurring revenue.

Signing contracts for lo...

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