Wade Arnold’s Post

In the vertical SaaS industry, the allure of becoming a Payment Facilitator (Payfac) can be tempting for founders looking for an easy boost to their revenue streams. However, it's crucial to understand the significant investments and focus required to successfully implement this strategy. Owning the payment process and the customer experience could offer substantial advantages, but as Wade Arnold insightfully points out, it's not without its challenges and potential impacts on financial metrics. #SaaS #Fintech

It’s been an incredible few days with growth equity firm Tidemark in San Francisco at their VSaaS Legends and Collective Live events. We connected with leaders in the Vertical SaaS community on topics ranging from payments to bootstrapping growth. At Stripe, we’re constantly asked questions like, “If I launch a payments product, what kind of attach rates or revenue uplift can I expect? What are the best control points?” To address these questions, Stripe partnered with Tidemark as a benchmarking survey partner for the 2024 Vertical & SMB SaaS Benchmark Report. This report features data from nearly 250 Vertical SaaS vendors at various funding stages and locations, covering attach rates, multi-product sequencing, retention, and more. If you’re an executive at a Vertical SaaS company looking to explore multi-product strategies in more detail, you can find the report here: https://lnkd.in/g-eKfqi3 Thank you Tidemark for your contributions to the vertical SaaS community, and for partnering with Stripe to help SaaS companies differentiate their platforms and accelerate revenue growth.

The PE Partnerships Team had a fantastic few days partnering with the Tidemark team at the recent VSaaS Legends and Collective Live events in San Francisco. A special thank you to Neetika Bansal, Josh S., and Andrew Walsh for hosting an excellent breakout session during the Collective event. At Stripe, we frequently receive questions such as, “If I launch a payments product, what kind of attach rates or revenue uplift can I expect? What are the best control points?” To help address these questions, Stripe has partnered with Tidemark as a benchmarking survey partner for the 2024 Vertical & SMB SaaS Benchmark Report. This report includes data from nearly 250 Vertical SaaS vendors across different funding stages and locations, covering attach rates, multi-product sequencing, retention, and more. If you’re an executive at a Vertical SaaS company interested in exploring multi-product strategies in greater detail, you can find the report here:  https://lnkd.in/gzxV7xcs Thank you, Michael Tan, Courtney Mullin, and Andrew Walsh, for being outstanding partners, and a huge thanks to Tidemark for your contributions to the vertical SaaS community.

Reducing Renewal Churn: How Can Your SaaS Stay Ahead of the Curve? SaaS startups are grappling with a critical issue: a 60% revenue churn due to pricing challenges. Ratio Boost offers a crucial solution with its Buy Now, Pay Later (BNPL) service, effectively addressing budget-related concerns of customers during renewals. Ratio Boost not only enables you to give customers the flexibility they crave but also ensures you get paid upfront. It eliminates the need for discounts to seal deals and eases cash flow worries. But there’s more to Ratio Boost than meets the eye: Ratio takes on the underwriting risk, sparing SaaS entrepreneurs from personal guarantees. Boost seamlessly fits into sales processes, making BNPL transactions smooth. Ratio delivers swift approvals, often within 48 hours, with funds landing in your account in just a couple of weeks. Ratio Boost handles payment reminders, lightening the load for finance teams. Ratio app is super easy to use; you can reduce churn and accelerate revenue in five steps. How does Ratio fit into your plans? #CustomerChurn #SaaS #RevenueGrowth #BNPL #CustomerRetention #BusinessStrategy #FinTech #SalesOptimization

🚨 Interesting finding from a recent implementation - If you are using Stripe’s Standard Revenue Recognition Report to record your Rev Rec entries. Sorry to tell you - you’re misstating revenue in a pretty fundamental way. 🚨 Happy to walk anyone through it with their Stripe data - just book some time on my calendar (link on my profile). At the very least Stripe - recommend the Rev Rec product owner connect with me because it’s a pretty big whiff… #saas #B2C #CFO #accountingandaccountants

The payment terms SaaS companies offer can make or break a deal. 💸 When choosing between offering a discounted annual contract or flexible payment terms to lock in a deal, it’s important to determine which will keep your company more competitive. 🔥 In our latest blog, we cover: ❗The impact of discounted contracts on cash flow predictability ❗The role of flexibility for managing unexpected expenses ❓What to consider when selecting the best option for your business Read through our insights to make an informed choice for your startup here: https://bit.ly/4cnkn2b 

This! We’re here helping #saas vendors to move away from discounting to get paid upfront and into offering flexible payments to buyers - preserves your ACV - preserves your ARR - helps you grow faster

As H1 draws to a close, the opportunities and challenges of H2 loom on the horizon 🌍 Payments infrastructure provider Paddle sees first hand what’s happening in the SaaS market through the wealth of growth and retention data in its B2B SaaS Index and monthly reports. It's why we spoke to their CMO, Andrew Davies, to get his take on the year so far and find out where he thinks the biggest opportunities lie in the months ahead... Andrew shares: ✅ Where the biggest opportunities lie for SaaS companies in 2024 ✅ Which trend or market shift he's most excited by ✅ The one area he recommends SaaS leaders to double down in throughout 2024 (and why) and more! Check out the full piece here: https://lnkd.in/eFdW4T_h #SaaS #2024opportunities #CMO #SaaSmarket #trends

In the cutthroat world of SaaS, the old tricks just don't cut it anymore. With the market shifting under our feet, reliance solely on conventional Go-to-Market strategies is like bringing a knife to a gunfight. The solution? Forge strategic partnerships that act as revenue "force multipliers" for your growth. Understanding the Ideal Partner Profile is critical; it’s not just about finding allies but creating a lattice of value that enhances your market position. Take a cue from Currencycloud's partnership with Visa—developing genuine, long-term relationships with potential acquirers doesn't just facilitate customer acquisition; it transforms into an exit strategy that enhances valuations. Partnerships can augment your revenue without the hefty headcount. These relationships can also validate your market value to potential buyers, empowering your company's appeal during acquisition discussions. Let’s face it, nurturing partnerships isn't just a buzzword; it's a long game with serious returns. If you're in the SaaS arena, it's time to rethink your strategy and invest in collaboration rather than competition. What strategies have you found effective in building partnerships for growth? Share your thoughts below. https://lnkd.in/eFhxiZGp

🔍 What SaaS Founders Need to Know About Payments and Monetization It’s easy to get caught up in product development and customer acquisition but without the right payment and monetization strategy, even the best product can fall short. Here are a few things every SaaS founder should know about payments and monetization: 💡 Flexible Pricing Models Matter: Whether it’s a subscription, metered usage, or tiered pricing, having the right pricing structure can make or break your business. The key is flexibility. As your customers’ needs evolve, so should your pricing options. ⚡ Seamless Payment Experience: If your payment process isn’t smooth, you’re creating friction that can turn customers away. From sign-up to subscription upgrades, everything should feel effortless because a complicated payment system is the last thing your customers need. 🔧 Automation is Your Friend: Manually handling billing, invoicing, and renewals? That’s time you could be using to scale your business. Automating payments ensures everything runs like clockwork while reducing errors and freeing up your team for strategic tasks. 📊 Know Your Metrics: Payment metrics are more than just numbers they’re insights into customer behaviour. Monitor churn rates, failed payments, and revenue growth closely. This data will help you tweak your pricing, optimize for growth, and prevent revenue leakage. At Codebooq, we help SaaS businesses build scalable, automated payment systems that grow with you. Whether you’re launching or scaling, the right monetization strategy makes all the difference. Ready to level up your payments? Let’s chat!