SaaS tools have become a lifesaver for businesses as well as individuals with any project management, communication solution and so on. However, it adds up to those subscriptions, does it not? For the budding entrepreneurs, startup founders, and people who are using several tools, such cost of these services can turn out to be too hefty an expense. Fortunately, there are a lot of means of cutting down on your SaaS costs without excluding the necessary tools. John Harrington with SaveMyCent is here to share a few simple, executable tips on how to get the maximum for your money.
Budget-Friendly Strategies for Managing SaaS Subscriptions
1. Cut Out What You Don’t Need
It is time to do the first thing first: stop paying for stuff you do not need. It is a very simple thing to sign up for a service and forget about it, but one needs to check subscriptions periodically. Look at the list of subscriptions you have. If it has been weeks since you last used a tool, you should probably get rid of it. If it is not helping you move the needle, it is costing you money.
Go through every subscription, take the time. Cancel it if you are not using it or it is no longer helpful to you in any situation. Eliminating tools which are not in use, saving costs and using those funds that could be more productive.
2. Leverage Free Trials & Freemium Versions
Not every SaaS tool does not requires a long-term investment. Most platforms have free trials through which you can try out the features before committing to them. You get to test if it performs the duty that it is designed to do without spending a single dime. And if all you want are the basics, perhaps a freemium version is all you need to keep things going on smoothly.
Freemium versions are ideal for those who are on a tight budget or running a business, and you get to try and test the tool to see if there is a need to pay for the premium features or not.
3. Bundle Services for Bigger Savings
Many firms provide bundle packages so that you can have various tools for a lower price instead of paying for them individually. Find a package and don’t buy each service separately.
However, be careful that not all tools from the bundle may serve your purpose, so ensure that you do not pay for things you do not even use. If the tools coming in the package are the ones that you will use, then bundling can be a marvellous way to help you save. But it is important to be sure not to pay for extra tools you don’t need for the sake of saving some money on the ones that you do need.
4. Switch to Annual Payments
Yes, it can be a big blow on the wallet to pay upfront big payments, but most of the annual subscriptions are at discounted rates. Annual payment instead of monthly savings may bring you from 10% to 30% discounts. If you have the intention of sticking with the service long term, it is a good idea.
After paying for a year, most SaaS providers encourage users to do it that way as it will guarantee them a longer-term revenue. If you are certain that you will keep on using the service, then it makes sense to pay annually to secure the lower price and save you from the higher monthly payments.
5. Monitor Usage and Downgrade When Needed
It is amazing how much money one can save just by looking at what one is using. There are many services which have different tiers, and if you’re using just a part of it, there’s no sense in paying for the premium one. Monitor your use frequently and decline if you can live with fewer features or users. It is a cheap means of reducing costs.
Take some time in each quarter to review your SaaS subscriptions. If you are on a high plan but using basic operations, then downgrade your plan. There is no need to stick to the plan as it was at first and risk overpaying.
6. Negotiate for a Better Rate
You do not always have to accept a quoted price. If you have worked with a SaaS provider for some time, feel free to contact them and ask for a discount or a better deal. Many providers will even give you a better percentage just to keep the good business relationship. If you are paying for several services or licenses, then say it, and perhaps you can negotiate yourself a bulk discount.
Negotiation is not spoken about much in the SaaS world, but a bit of attempting may be worth it. Service providers would like to retain you as a customer, hence the need to seek a discount, particularly if you have been a recurrent user serves you better.
7. Explore Free or Open-Source Alternatives
Why spend money on something if you can have it for free? For some cases, the alternative could be an open-source or free service capable of doing it all at the same level as the paid service. Free tools for project management, time tracking or customer relationship management do not have to suffer in quality. With a little research, you can find tools that do not compromise quality and save money.
Open-source tools can be a perfect choice, particularly for tech-savvy users. It may take some time for you to configure them, but the payout is massive savings in the long term.
8. Take Advantage of Referral Programs
There are a lot of SaaS companies that have referral programs under which you get rewarded for referring new customers. Have you found something and are using it already? Why not share the others? You can usually get free months, credits, or even cash for referring other people to the platform. This is an easy way to save your SaaS costs and, in addition, help a friend or colleague find a tool that he or she may need.
Referral programs are a win-win: you are saving money, and additionally, your network gets to use a reliable tool. And if you’re loyal to a particular SaaS provider, participation in such programs can help you pay the costs partly.
Also Read: Building a Scalable Management Structure for Your SaaS Startup
Conclusion
Saving money on SaaS subscriptions does not have to mean a fundamental change in your workflow; it’s about making smarter decisions. Through periodical assessment of your tools, free trials, bundling of services, and bargaining for better deals, subscription can cost much less. Just take the lead, cut the fat and only pay for the actual needs.
