Harnessing SaaS economics. Leveraging familiar B2B motions. Preserving procurement best practices.
The economics of B2B SaaS allow for significant customer acquisition costs to support growth. For most SaaS vendors, a sizable component of that customer acquisition cost is lead generation.
Under the status quo, those lead gen costs are typically spent on intermediaries, who round up a large number of prospects for the SaaS vendor. Only a small percentage of those prospects will convert into opportunities, and an even smaller percentage will convert into closed/won deals; implying a relatively high lead gen per closed/won deal cost.
At CAC Market we believe that hand-raising buyers who are ready-to-buy should be rewarded with the same economics. By capturing these lead gen economics, hand-raising buyers can reduce their net out-of-pocket purchase price.
Moreover, by concentrating customer acquisition resources only on those buyers that are ready-to-buy, vendors will increase their conversion rates and sales productivity.
Buyers who are ready to buy are meaningfully more valuable than those who are not. Yet that value doesn’t translate into any tangible benefit for these Buyers. On the contrary, B2B SaaS Vendors currently spend money for the contact information of unengaged prospects, while hand-raising Buyers provide their own details for free. We believe that hand-raising Buyers should know their worth, and should be able to monetize the value of their engagement.
In B2B SaaS, CAC is often viewed as an output: How much money was spent, and how many logos were acquired. We believe that performance-minded Vendors should take a more proactive approach. By cross-referencing a prospect’s firmographics against their ICP, Vendors can estimate conversion rate, lifetime value and target CAC before they incur the spend. CAC Market allows Vendors to make informed bids for each hand-raising Buyer, at scale.
Hand-raising Buyers want to monetize their value. Vendors are willing to pay for that value. But in order for this exchange to take place, both sides must feel comfortable. CAC Market provides a safe environment for Buyers to provide their firmographics to the relevant Vendors and to receive bids. Selected Vendors then contribute to the Bank progressively through the Engagement Cycle, capping their exposure if they are not advanced at each stage. When the Buyer closes the deal, they earn all the money accumulated in the Bank; or else it is all returned to the Vendors.
By capturing the lead generation costs (which would otherwise be paid to third parties) in the Bank, Buyers reduce their out-of-pocket costs for the SaaS tool; above and beyond the discount from list price that the Vendor is able to provide. Vendors still receive the full ARR of their deal, including the portion paid out from the Bank.
Cold outreach is expensive for Vendors and irritating to Buyers, particularly those who are not in a buying cycle. This cat-and-mouse game has created aggressive intermediaries and cagey prospects. We envision a world where transparent hand-raising is incentivized; and where CAC Market becomes the most effective way to acquire SaaS tools and the most effective way to acquire customers.
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Get Paid To Buy SaaS Tools
Connect and learn more about how you can
Only Engage With Buyers Who Are Ready To Buy
