So many of you may find this ironic on SaaStr, but I’m scared to buy new SaaS apps today. Genuinely.
Why? Let’s make a list. But the uber-reason is buying and renewing has in many cases gotten much less customer-friendly than it used to be. With one big exception: so many AI B2B apps are making it easier.
Why I’m scared (for real):
#1. I’m Scared It Will Be Close to Impossible to Cancel or Downgrade
Too many apps I’ve purchased now make it just so hard to cancel. I’ve argued with several vendors recently just trying to cancel or downgrade after years of being a loyal customer. And so many now hide the cancel and downgrade links or make them impossible to use.
Yes, If You Ask Customers If They Want To Cancel, They Will. And That’s OK. The Data from RevenueCat.
Claude, OpenAI, etc. don’t make it hard:
#2. I’m Scared You’ll Force Me Into a Much, Much More Expensive Edition
Twice Zoom has told us on renewal we needed to buy far, far more seats than before — and sign a multi-year agreement. Two years in a row, And it’s true with so many other vendors, too. Another vendor told us we had to pay a new $7,000 a year additional “logo fee” to have a logo on their app. A JPEG. I don’t need another headache like this. So maybe I’ll hold off on buying your app, too. Sorry. Maybe I’ll even just see if Claude or OpenAI can do it.
#3. I’m Scared About Renewal Drama
Did I forget to send a notice on time? Did I automatically sign up again without knowledge? Even worse, are you going to threaten to sue me if I want out? A number of public SaaS companies threaten their customers on renewal now. Several suggest legal action. It’s crazy. I don’t need that stress in my life. This used to be rare. Now it seems almost commonplace at any vendor with slowing growth.
#4. I’m Scared You Aren’t Being Honest About Variable Costs and Charges
I recently met with the CEO of a $200m+ ARR B2B leader where a lot of customers complain about variable charges after they sign up. That the “consumption” charges are way higher than anyone expects going on. The CEOs response? “We have no choice. That’s our business model.”
This is why I’m especially wary of many marketing and sales apps. They want to charge per email, per send, per whatever. Good for you. But I’m out. I don’t want a huge unexpected bill. Our list is 300,000 but we’re not a F500 company and I’m a bit burnt on folks trying to charge us like we are. If you’re Stripe or RevenueCat and just a small portion of the revenue I make, it’s fine. That’s highly aligned. But if I’m using you for B2B SaaS and I’m gonna get hit with a big usage bill, well. No Thanks. I’ll just muddle on with the tools I already have.
#5. You Don’t Have a Free Trial or Free Edition. I’m Scared That Says Your Product Is Just Too Hard to Use.
Yes, I know AI has costs. But almost every AI leader, from OpenAI to Opus Pro to Descript, has a free offering you can at least get going on. I honestly don’t trust any SMB or prosumer apps without a Free edition.
AI is Driving a Freemium Renaissance. Run Toward It.
See AlsoGoodbye SaaS, Hello AI Agents
#6. I’m Scared Customer Success Will Do Nothing After the Deal is Closed
The majority of the vendors we used at SaaStr have converted Customer Success into part of the sales team. And they never help solve our problems anymore. If I’m paying five figures, I expect more than that. I’d rather not move to your app then.
#7. I’m Scared I’m 100% On The Hook for The Migration From Another Solution
Too few SaaS vendors care at all about the headaches of moving from one vendor to another, I don’t need another headache.
#8. I’m Scared You’ll Burn My Time. I Don’t Have a Lot.
The other day I wanted to upgrade to a multi-seat version of an app. Just 2-3 seats. But we had to schedule a call with sales. Is it all going to be that hard? I’m guessing yes.
#9. I’m Scared You’ll Make Exporting My Data Hard
This is down on my list, but still a lingering concern. Several leading SaaS vendors now tell you that you can’t take “your” data with you. Perhaps you can’t. But I don’t need that headache. I have plenty already.
The list could go on. It does go on.
Go buy your app yourself, like a prospect. Slow it down and be honest. Do you see any of this friction? If so, are you really sure this is the right thing, at least in the long run?
Isn’t SaaS supposed to be … a service?
What happened to that? Look at the leaders of the next generation. Do Cursor or Claude rip you off? Do they play these games? Maybe a little bit. But I don’t see it. At least not yet. They are wildly good deals IMHO in fact. And so that’s about all I’m buying right now.
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