The Official SaaStr Podcast: SaaS | Founders | Investors

SaaStr 792: Why I’m Scared to Buy New SaaS Apps Now with SaaStr CEO and Founder Jason Lemkin

17 snips
Mar 7, 2025
The discussion dives into the challenges buyers face when considering new SaaS applications, such as complicated cancellation and unexpected pricing. Emphasis is placed on simplifying the purchasing journey and enhancing customer support. Founders are urged to minimize sales friction to maximize opportunities. The conversation also highlights an upcoming major SaaS event featuring networking and workshops, where startups can present their AI innovations and connect with industry leaders.
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ANECDOTE

Hidden Cancellation

  • Jason Lemkin tried canceling an unused SaaS app, but the process was unnecessarily difficult.
  • The company hid the cancellation link and then claimed finance wasn't available.
ANECDOTE

Forced Upgrades

  • Zoom unexpectedly forced Jason Lemkin to upgrade to a much more expensive plan with more seats.
  • Another vendor added a $7,000 annual logo fee for a service they had previously provided for free.
ADVICE

Renewal Drama

  • Immediately send a termination notice upon buying a SaaS app to avoid unwanted auto-renewals.
  • Some SaaS companies threaten legal action if customers don't fulfill multi-year contracts.
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