The "catch" is that they take a 6% rake off the annual amount.
This means you get 94% of the annual contract value. So for a $1,000 agreement, you would keep $940. Still a pretty good deal if you ask me.
Its also pretty nice because they calculate it off of the extrapolated monthly term, which is already priced higher (usually) than the annual term. What i mean by this is how often have you seen a SaaS service that sells a product for $99 per month, OR $999 per year? Pretty common, right? Well in this case the SaaS is already offering the customer a 20% discount for paying annually upfront.
But in the case of Pipe, they take the $99/mo customer, extrapolate the total they will pay for the year out to $1,188. That is what they pay you out on, so they take a 6% rake from that, which means the company gets $1,116.72. That's higher than the $999 they ask for annual agreements with customer's directly. So it's a pretty good deal for the company.
This means you get 94% of the annual contract value. So for a $1,000 agreement, you would keep $940. Still a pretty good deal if you ask me.
Its also pretty nice because they calculate it off of the extrapolated monthly term, which is already priced higher (usually) than the annual term. What i mean by this is how often have you seen a SaaS service that sells a product for $99 per month, OR $999 per year? Pretty common, right? Well in this case the SaaS is already offering the customer a 20% discount for paying annually upfront.
But in the case of Pipe, they take the $99/mo customer, extrapolate the total they will pay for the year out to $1,188. That is what they pay you out on, so they take a 6% rake from that, which means the company gets $1,116.72. That's higher than the $999 they ask for annual agreements with customer's directly. So it's a pretty good deal for the company.