Collecting Payments

Don't Overlook The Payment Process

Collecting payments is the goal of any business. Most don't think about this step, but making it simple to collect payments from your customers can make a huge difference. Removing all the friction reduces one more obstacle to closing the deal.

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Things To Think About With Payments

SaaS platforms are sold in an entirely different way than the usual conventional sales processes, typically as a subscription service. Reoccurring payments bring lots of obstacles, especially if you're a product-led platform that offers a freemium or trial period.

Making It Easy To Collect Payment

Most people aren't paying you with cash or a check. Accepting online payments is going to be the more convenient method.

Having your customer sign an agreement that allows you to automatically collect these payments each month is something you'll want to consider when writing up your contract.

Better yet, if you can share enough value and build enough trust, ask if your customer will pay in an annual sum. This will allow you to have an influx of funds that you can use to drive platform innovation, marketing campaigns, or hire additional team members.

Great platforms for reoccurring payments are Paddle, Recurrly, Stripe, and PayPal.

All these payment platforms allow you to share a link with your prospect that allows them to pay you, the payment is deposited in your bank account, and most importantly, these platforms remove the liability of security issues around banking information because the transactions are handled by a third-party who is liable for that data.

Managing Credit Card Information

When considering a payment processing platform, one thing to ask is how well they ensure a valid credit card is on file. You'd be surprised by the number of issues when updating credit card information.

According to ProfitWell research, they've seen that delinquent churn can account for up to 40% of a SaaS company's overall churn. No matter how successful you are at combating active churn, you will always have a baseline of customers churning out purely through expired credit cards and failed payments.

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Getting Feedback

All these steps have led to the reason you launched an MVP. You wanted to understand if you found a potential market, that resonates with the platform solutions you've to offer, and find out what they're willing to pay to access the platform.

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