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The Beginning of the End for Per-User Pricing? | Logan VC

Successful SaaS companies over the course of the last decade have made it in vogue to pray at the altar of per-user pricing.  It makes sense – Salesforce, ServiceNow, Workday and Zendesk all price on a per-user basis and those are flashy public companies.

Basically, is per-using pricing Justin Bieber in 2010 and we’re headed to Justin Bieber in 2015?  Like at first everyone was like “huh what is this per-user SaaS thing” and then a bunch of young kids were going nuts for it and you were like “oh hm that thing won’t go away” but you still dismissed it and then you were like “hm that’s a catchy per-user SaaS song” but now you just wish it would go back to Canada(a). Or is it more like Bruno Mars where it followed the same path(ish) but instead of wanting it to go back to Canada, you want per-user SaaS to play back-up on a song with every hip-hop artists that hasn’t been relevant since 2000? Hang with me – this is going somewhere.

Per-user pricing may actually hurt your business according to this study by McKinsey (and chart below).

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