Managing and collecting SaaS product payments is tricky. First, you’re offering a purely digital product on a subscription basis. Billing everyone on time and processing payments smoothly is a lot of work.
Second, subscription fees are dynamic. The figure on each invoice depends on , usage, billable events, and more. Making sure you know how much to charge each subscriber, at scale, is a daunting task.
This is why finding the best SaaS billing platform for your business is so important. Get it right, and you’ll bill customers accurately and reliably each month. Get it wrong, and team members will spend a lot of their time figuring out your financials.
In this guide, we'll discuss the key features of a quality SaaS billing platform. Read on to find the right solution for you, streamline billing, and (ultimately) boost revenue.
Competitive pricing strategies can come in many forms, a business can choose to always be the cheapest of their competitors or always offer the average price of the highest and lowest priced competitors
A competitive pricing strategy is a price-setting that is based on your competitors’ prices. This pricing method focuses solely on the prices of your competitors that are public, but it does not take into account how much customers value the product or production costs.
A strong competitive pricing model is based on thorough market research. When you know how the prices of your top competitors in your market and how those prices might meet customer expectations, you have a basis for determining the rates of the prices of your own products or services. Competitive pricing strategies can come in many forms, a business can choose to always be the cheapest of their competitors or always offer the average price of the highest and lowest priced competitors - they all count as competitive pricing strategies.
A quality SaaS billing platform helps you automate and streamline billing processes. It also helps you track product usage across subscriptions, process payments, and keep a clean record of financial transactions.
A billing platform can be a standalone piece of software… Or part of a broader Quote-to-Cash solution like Salesbricks.
The SaaS industry is growing rapidly, with the global market projected to reach $908.21 billion by 2030. This means more competition and higher customer expectations.
To stay ahead, you need a quality billing platformautomate invoicing, billing, and payments so you can focus on
Another reason you need a SaaS billing platform? For product-led cadences. To offer self-serve sales and easy recurring payments to clients, you need a way to bill and process funds automatically. This is where a billing platform comes in handy.
Some other key benefits of a quality billing platform include…
All of these are reasons you need a billing platform.
Many companies, especially in SaaS, assume that high-end billing platforms are expensive. But you don't need to pay 4 and 5 figure enterprise solutions to bill your SaaS customers.
Take our own solution. With Salesbricks, you get a quality billing platform for as little as $99/month and 0.8% per sale. Our feature set includes…
The best part is that our software is built with SaaS companies in mind. It’s perfect for usage-based pricing models, it tracks billable events, and it manages entitlements automatically. To learn more, book a demo today!
Billing and subscription management share many similarities. However, there are distinct differences - particularly in the SaaS space.
A billing platform focuses on billing customers and processing payments. Its main purpose is to get the payment from your customer and deliver it to you.
A subscription management platform goes further. On the billing side, it automatically processes recurring payments and stores payment information. It also does other things, like…
In other words, a billing platform just bills and collects money. A subscription management platform does that too - but also manages subscriptions. This is important for a SaaS product, where subscription management takes a lot of work.
Salesbricks is what's known as a "Quote-to-Cash solution" that includes subscription management but goes even further. It gives you a suite of tools that help close sales, like a powerful quote builder… And then helps you manage billing, invoicing, entitlements, and more in one fluid motion.
The exact kind of solution that’s best for you depends on your needs. But it’s important to be aware that QTC solutions are more versatile than pure billing or subscription management platforms.
How do you find a billing platform that's priced fairly, matches your needs, and integrates well with your existing systems? Here are 4 key questions to ask!
It's important to consider the feature set a billing platform offers. Many function primarily as payment processors, sometimes with basic recurring payment capabilities.
Others are different. They may include e-signature collection, recurring payment processing, and subscription billing solutions. They may also help process funds using local payment methods, international currencies, cryptocurrencies, and more.
You want a solution that offers as much value as possible to your business without being overwhelming. As a rule, all other things being equal, more features is better for your business… But you don’t want to overpay for things you don’t need.
Pricing is a major factor when searching for the best billing platform. You must consider your needs: payment volumes, budget, and features needed. Once you know your requirements, it’s important to assess how much different solutions will end up costing you.
Some factors to consider include:
1. Fixed and commission-based fees. Evaluate the pricing structure, ensuring that both fixed fees and commission percentages are reasonable. A low commission rate may seem attractive, but if the fixed fee is high (e.g., $20 per transaction), you may still overpay.
2. Transaction volume suitability. Ensure the pricing aligns with your current transaction volume. Your chosen billing solution should be cost-effective and scalable right from the start, accommodating your business needs. It should not penalize you for months with low traffic volume.
3. Industry standards: Compare the pricing with industry benchmarks. Typically, SaaS billing platforms charge 2-5% per transaction (plus a flat fee). Salesbricks offers competitive rates, ranging from 0.8-1.9%, plus a flat fee starting at $99 – which we do to stay competitive.
Check that your chosen SaaS billing platform supports the currencies and geographical areas you work in. There's no point in signing up for a platform that doesn't take payments from your customers' locations.
Research is key here, and if the information isn't readily available on the platform's website, you should ask the following questions:
Some platforms offer bare APIs, requiring complex integration with your existing systems. This can offer challenges for implementation and cause delays. Reviewing data can also be laborious and time-consuming.
To avoid unnecessary complications, select a billing platform that aligns with your team's capabilities and resources. You want a solution that strikes the right balance between robust features and ease of use. This ensures easy onboarding and smooth operations.
Your best option is to go with a plug-and-play. The easier your billing solution is to set up, and the more integrations it has with your current software, the better. It’ll seamlessly slide into your workflows and app ecosystem, reducing workload on your team and yourself.
As a SaaS business, you want to offer flexible discounts to clients. For example, offering renewal discounts for clients entering their third year can enhance customer satisfaction and retention. Your billing platform should make discounts like these easy to apply.
A quality billing platform automatically updates entitlements based on subscription and payment status. This ensures that customers automatically receive the appropriate access and benefits according to their plan, reducing manual efforts.
A comprehensive subscription management feature streamlines upsells, cross-sells, and renewals. This makes managing and optimizing revenue easier, especially in SaaS. Complete QTC or subscription billing systems are best for handling subscriptions, as a rule.
You want your billing platform to slot into your current software ecosystem seamlessly. Integration support ensures smooth data flow, eliminates manual data entry, and enhances overall operational efficiency by creating synergistic workflows.
The ability to automate tasks email distribution, payment reminders, and access management are crucial. Automation features save time and manual effort, freeing up valuable resources for more pressing tasks.