How To Perfect Your SaaS Pricing Using The 10-5-20 Rule

Have you mastered the black arts of pricing your SaaS product? In this video, I’m going to share with you how to perfect your SaaS pricing in the early days using a simple 3 step framework.

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If nobody’s pushing back on your pricing…

That’s a problem.

You might be thinking:

“But Dan.. isn’t it a good thing that everyone’s saying YES to my price without resistance? Why would I want to rock that boat?”

Simply put:

Without pushback, you’re leaving profits on the table and making your team complacent.

Two things that you literally can’t afford to be doing in the early days of growing your SaaS company.

If hearing this adds even more anxiety to your pricing decisions, let’s take a deep breath.

I’ve got you covered.

In this week’s video, I break down the 3-Step formula for nailing down the PERFECT pricing level that maximizes your profits, keeps customers happy, and creates a forcing function for you and your team to focus on creating massive value.

At a high level, here are the 3 steps:

1. 10x value
2. 5% more
3. 20% pushback

The 3 steps all build on top of each other to produce the coveted 10-5-20 rule.

But if there’s ONE thing you pull from this week’s video to start adding immediate profits, it’s this:

For the next 10 customers you talk to, raise the price of your software by 5%.

And then please… whatever you do… play it cool when they say “yes”.

Don’t crush the vibe by acting surprised 😉

The key here is to test the upper limit that your market’s willing to pay for your solution. And then keep testing until you find that line of resistance.

Might make you sweaty palmed at first. But do what you can to stick it out.

You owe it to your team, your product, and your bottom line.

Give the full video a watch and then let me know how your next prospect responds to that 5% increase.

Dan “profiting through pushback” Martell

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“You can only keep what you give away.” That’s the mantra that’s shaped Dan Martell from a struggling 20-something business owner in the Canadian Maritimes (which is waaay out east) to a successful startup founder who’s raised more than $3 million in venture funding and exited not one… not two… but three tech businesses:, Spheric and Flowtown.

You can only keep what you give away. That philosophy has led Dan to invest in 33+ early stage startups such as Udemy, Intercom, Unbounce and Foodspotting. It’s also helped him shape the future of Hootsuite as an advisor to the social media tour de force.

An activator, a tech geek, an adrenaline seeker and, yes, a romantic (ask his wife Renee), Dan has recently turned his attention to teaching startups a fundamental, little-discussed lesson that directly impacts their growth: how to scale. You’ll find not only incredible insights in every moment of every talk Dan gives – but also highly actionable takeaways that will propel your business forward. Because Dan gives freely of all that he knows. After all, you can only keep what you give away.

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