Ask HN: My SaaS startup is getting a partner, how much I should charge them?

2 points by saas_startup 7 years ago | 2 comments

I started an SaaS startup that is aimed at very specific hosting for civil engineers. I do have a basic product but to have something ready to general public I need additional 6 months and input from the engineers. The current costs of running the software are very low (~$100 a month). I developed the project in my evenings so there is not fixed cost there either.

I am talking to one engineering company as a partner and we are currently discussing how much I should be charging them. It is crucial for me to be able to have at least one company to partner with. I need them to provide me feedback on the features, suggest new ones and use their name on my website as a partner.

My question is how much I should be charging them such that they move from the legacy vendor to me. I could go as low as $0 given my very low running costs but my worry is that in a 6 months time when my services becomes popular I have to continue to service them while I will have multiple other clients that actually pay. Any ideas how I can structure the pricing ?

mtmail 7 years ago |

One common recommendation for SaaS is never to over unlimited pricing. I'd see charging $0 as unlimited. Limiting that, e.g. to the first year, seems fine though. I'd still ask for $50/month. The difference is that any invoice amount means they (e.g. product manager) needs approval, signatures, review. That's a higher commitment from them while the amount is hopefully nothing compared to whatever they pay for the legacy software.

FrenchTouch42 7 years ago |

I think the main question is: do they need your product?

It seems to be the case, which is why I strongly advise you to not make it "free" no matter what feedback, help or features you think they'll bring to your project.

Instead, think of them as your first customer. You might get 100 more or only one. Charge them the cost of the software and foster a special relationship with them, maybe in terms of support or beta features, whatever works for you.

Good luck!