Notes for owners · MVP and Product Development
How to Plan SaaS Plans, Trials and Billing Before the Build
Decide the billing metric, the plans and what each includes, the trial rules, and what happens when a charge fails before any code is written. Put these in one document and sign it off. GullySystem builds plans and limits as console settings, so prices can change after launch without a new release.
Ganesh HS, Strategy and Technology, GullySystem · · 3 min read
Choose what you charge for
Pick one billing metric first. Common choices are users, branches, vehicles, students or policies under management. A good one grows as the customer gets more value from the product.
The metric shapes the build. Vehicles added or dropped mid-cycle need the charge adjusted. Seats need a count the product can enforce.
Keep it to one metric at launch. Mixing several makes invoices hard to explain.
Define plans as features, seats and limits
A plan is a bundle of switches. It says which features are on, how many users may log in, and how many records or how much storage an account may use.
Decide what the product says when an account reaches a limit. A message with an upgrade path on the same screen works better than a silent block. Customers who negotiated different terms get an override on their own account.
Starting with one plan and a simple trial is a reasonable path. Tiers and offers can follow once customers are using it.
- Plan names and who each one is for
- Features switched on in each plan
- User seats and record or storage limits
- Monthly and annual cycles, and coupon rules
Set the trial and signup rules
Decide whether a trial needs a card or mandate up front. Asking for one filters out casual signups. Skipping it lets more people try the product.
Then plan the first hour. A new account should open with default masters and sample data, so the prospect sees something working. Some products also need an approval step before an account goes live.
Ask a salesperson to click through the signup prototype. They know where prospects stall.
Write down what happens when payment fails
Some charges will fail. The rules for them should be written before launch, not improvised by the accounts team.
Also decide the exit. A customer who leaves should be able to export its own data. The account is then archived and removed on a published schedule.
- How often a failed charge is retried
- Who receives reminders, and when
- How long the grace period lasts
- When the account turns read-only, then suspended
- How access returns once payment succeeds
Settle collection and invoices with your CA
Recurring collection runs through a payment gateway account opened in your own name. Gateway subscriptions, card mandates and UPI AutoPay are the usual routes. Approval and mandate activation sit with the payment provider, so start that early.
Invoice format, numbering series and tax treatment are for your CA to set. The product is then configured to match. Do not let the developer decide these.
Before launch, run a full cycle on a live account. Sign up, upgrade, take a small real charge, fail a renewal on purpose and reactivate.
Plan and billing decision sheet
A two-page worksheet covering the billing metric, plan names, features and limits per plan, trial rules, retry and grace rules, and exit terms. Add a column for who decides each item and the date it was agreed. Sign it before the build starts.
Open a blank worksheet to printQuestions owners ask
Do plan prices have to be final before launch?
No. When plans and limits are settings in an operator console, prices, offers and trial lengths can change later. The billing metric is harder to change, so settle that first.
Can the software decide our tax treatment on invoices?
No. Your CA decides tax treatment, numbering and invoice format. The product is configured to follow those decisions and can post entries to your accounting software.
Should the trial ask for a card or mandate?
It depends on what you want from the trial. Asking up front filters out casual signups, while skipping it lets more people try. Either can be set as a rule and changed later.
Whose name should the payment gateway account be in?
Yours. Subscription money should reach your bank account directly. A gateway held by the developer makes leaving that developer much harder.