The Parlay Spectrum: Why SaaS Sellers Love Parlay
Parlay operates on a large SaaS spectrum, from the earliest startups to the most established enterprise organizations.
While we work with everyone, the reason companies love Parlay will vary depending on where they fall in this spectrum. nd we can jump into the details.
Startups and SMB
Many early-stage SaaS companies begin their journey by offering monthly payment options, with aspirations to eventually move to annual only.
This is mainly because the annual-only option provides cash up-front, looks better on the books, reduces churn rates, simplifies accounting, and frees up the back office.
Until they can reach the annual-only milestone, startups and SMBs are typically content to offer both monthly and annual payment terms.
While this is great for buyers, it makes growth slower for the seller.
This is a huge reason why startups and SMBs love Parlay.
Their customers still get monthly payment options, but they get the benefits of cash up-front without dilution or debt on their books. This gives them the capital they need to grow faster and they are much more attractive to potential investors.
Enterprise
On the other side of the spectrum, we have enterprise organizations.
Enterprise SaaS companies aren’t as concerned about working capital as startups and SMBs are.
No. What they care about is revenue.
Sure, startups and SMBs care about revenue too, but it’s different.
By using Parlay, enterprise sellers can unlock a new customer segment that can’t (or is unwilling) to pay for annual contracts.
Our research shows that enterprise SaaS can grow their TAM by nearly 15% on average by offering monthly payments.
While the percentage alone may not seem significant, when you look at the impact on revenue, we are talking millions to 10s of millions of dollars, if not more.
Mid-Level
Contrary to both SMBs and enterprise SaaS companies, we find that most mid-level sellers are perfectly happy offering both monthly and annual payment terms.
They are neither strapped for working capital nor missing out on customer segments due to annual contracts.
Where Parlay comes in strong for mid-level SaaS companies is mitigating risk, eliminating the need for chasing money, and simplifying the back office.
In short, sellers across the entire SaaS spectrum love Parlay for different reasons.
Regardless of what these reasons are, it always becomes a win/win for both the seller and the buyer.
Interested in learning more? We’d love to chat! Book a call and we can jump into the details.
Compromise without compromising.
With Parlay you can provide monthly payment options without jeapordizing annual contract terms.
