SaaS Sales Models

What does the primary button on your website's homepage say?

Is it “Start for Free,” “30-Day Free Trial,” “Talk to Sales,” or “Book a Demo?”

What do these buttons have to do with your SaaS sales model, and how do you determine which option best suits your SaaS business?

The decision about what goes on that button is far more strategic than it seems. It’s a reflection of your entire sales model and impacts your entire growth trajectory.

In this article, I’ll walk you through the three foundational SaaS sales models you need to understand. By the end, you’ll have insights to not only choose the right model but also ensure your Go-To-Market strategy is fully aligned for long term success.

Knowing the Framework

The right sales model for your business depends on more than just your personal preferences. It depends on the nature of your product and the size and complexity of your deals.

There are three primary SaaS sales models: Freemium, Free Trial, and Sales-led.

Choosing between these models doesn't need to be arbitrary. There’s a clear framework to help guide you to that decision. The key factors are your deal size and complexity of your product. If your product brings small, straightforward changes, a Freemium or Free Trial model might work. But if your solution involves complex, large scale transformations, a Sales-led model is likely more effective.

Which call-to-action button you choose on your homepage is more than just a design element. It represents your entire Go-To-Market Strategy and signals how you plan to acquire customers. The sales model you choose will directly impact your customer acquisition costs, sales cycle, and even the scalability of your business.

When I work with Founders, we focus on understanding their product complexity and the problem they’re solving first. How many decision makers are involved? How long is the deployment process? By analyzing these factors, you can confidently choose the right model for your business and avoid costly missteps.

SaaS Sales Model 1: Freemium

Freemium is a model where you offer a basic version of your product for free, with the option to upgrade to a paid plan for additional features or capabilities. This model is common in B2C offerings but less prevalent in B2B, where businesses handle more critical operations and expect a higher level of trust and support from their vendors.

One of the main reasons freemium isn’t widely adopted in B2B is that businesses are typically looking for reliability and assurance in the tools they use. Many founders mistakenly believe that offering a cheaper or free option will attract customers. In reality, businesses prefer to pay for solutions they rely on. Paying for a product signals stability—they want to ensure the company behind the tool will be around for the long haul and that they’ll receive adequate support. Businesses are hesitant to entrust a critical part of their operations to a completely free tool that might not have the resources to stay afloat or provide ongoing support.

Freemium, however, can work if your product is easy to use, low in complexity, and can start delivering value without much effort. It’s especially effective when a single user can quickly test the product, see its benefits, and then naturally expand usage to other team members. This bottom-up approach works well in environments where the product’s value grows organically as more people adopt it.

The freemium model thrives in scenarios with low complexity, where onboarding is simple, and users can experience immediate value. If your SaaS product fits this profile, freemium could be an effective way to gain traction, build trust, and eventually convert users to paid plans.

SaaS Sales Model 2: Free Trial

The Free Trial model is ideal for SaaS businesses offering a more complex product but not quite ready to commit to a full sales-led approach. Instead of offering your product completely for free, a Free Trial gives potential customers a limited period—often 30 days—to explore your product at no cost before deciding if it’s worth the investment.

This model has two key benefits:

1. Filters Out Freebies:

Unlike freemium or free tiers, a Free Trial introduces a level of commitment from the user. It helps weed out people who are just looking for free solutions and have no intention of paying. This is crucial because completely free models can often attract large numbers of users who drain your support resources and increase infrastructure costs without converting into paying customers.

2. Attracts Serious Buyers:

A Free Trial sets the expectation that your product has value, and at the end of the trial, users will need to pay. Often, businesses ask for a credit card upfront, signaling that the product is a premium offering. This slight friction in the process acts as a filter, attracting users who are more serious and likely to convert into paying customers. It also ensures that users will be fully engaged during the trial period, exploring your product’s features and assessing whether it meets their needs.

A Free Trial works particularly well when your product is complex enough that customers need time to understand its full value, but not so complex that it requires a lengthy sales cycle or in-depth onboarding from a sales team. It provides the perfect balance—giving users hands-on experience with your solution while still positioning it as a valuable tool that will require a financial commitment down the line. This model often results in higher-quality leads and a smoother transition to paid plans once the trial period ends.

SaaS Sales Model 3: Talk to Sales (Sales-Led)

As your product becomes more complex and represents a significant investment for customers, the Sales-led model becomes the most effective approach. This model is designed for high-touch, personalized interactions with decision-makers or executives who are looking for solutions that can meet their long-term, strategic needs.

Unlike Freemium or Free Trial models, where users can explore the product on their own, the Sales-led model is for those who require more guidance before making a purchase. These potential customers aren't interested in trying the product out for a short period. They want in-depth conversations with a knowledgeable sales team to fully understand how your solution fits into their organization’s goals.

Here’s what makes the Sales-led model unique:

1. Tailored for Complex Solutions

When a product has a steep learning curve, involves custom integrations, or addresses critical business functions, potential buyers will require a more personalized approach. These solutions are often complex and require detailed discussions to ensure they can be implemented correctly and deliver the expected ROI.

2. Focus on High-Level Decision Makers

In the Sales-led model, you’re often dealing with executives or senior leaders. These individuals are less concerned with trying the software themselves and more focused on whether the solution aligns with their company’s strategic objectives. They want to hear directly from your sales team about how your product stands out from competitors and what kind of support they can expect throughout the implementation and beyond.

3. Longer Sales Cycles, Larger Deal Sizes

The sales process in this model typically involves multiple calls, demos, and meetings with various stakeholders. It’s a more involved process that can take weeks or even months to close. However, the payoff is huge. These buyers are often willing to spend tens or even hundreds of thousands of dollars on a solution that they view as a long-term investment.

The "Talk to Sales" button on your website signals that your product is not a quick, low-cost purchase but a sophisticated solution that requires expert consultation.?

In Conclusion

Choosing the right sales model for your SaaS business is more than picking a button for your homepage—it’s a strategic decision that shapes your growth, customer acquisition costs, and the types of customers you attract. Whether you choose Freemium, a Free Trial, or a Sales-led model, it’s essential to align your approach with your product’s complexity and the needs of your target market. By understanding the strengths of each model, you can create a Go-To-Market strategy that supports sustainable growth and long-term success.

Learn More GTM

If you're a SaaS Founder looking to dive deeper into building an effective Go-To-Market strategy and how your sales model plays a role, grab a complimentary copy of my 5-Point SaaS Growth Strategy Guide.

TK was CEO & Founder at ToutApp (backed by a16z, Jackson Square Ventures and prominent angel investors in Silicon Valley). After scaling ToutApp, it was acquired by Marketo where TK went on to join Marketo's executive team and serve as their Senior Vice President of Strategy. After running a 2-year transformation as part of the executive team, Marketo was acquired by Adobe for $4.75bn.?

TK now spends his time as a Strategic Advisor to 300+ B2B SaaS Founders globally. As the Founder of Unstoppable, he helps other SaaS Founders grow their startups faster through his Weekly Youtube videos and his application-only SaaS Go-To-Market Program .?

Want to learn more about building a proper GTM strategy for your SaaS business? Grab a complimentary copy of my 5-Point SaaS Growth Strategy Guide here.