How do you manage upgrades and downgrades of your B2B SaaS productSOLVE
Nov 24, 2020 7:20 AM
I've been searching for a while for the good way of managing upgrades and downgrades in Hubspot.
As an example for UPGRADES:
I have a client with a 12.000 euros licence, billed each year on the 1st April, the ACV and ARR is 12.000 eur. In Jan, that clients decides to increase the licence to the next level and take the 15.000 euros licence. I want to be able to track the 3.000 euros upgrade we did to report it in a waterfall diagram like this one : . I created a product "upsell" for that but I'm not sure it's the right way for doing this. In the DEAL that needs to be invoiced, once we learn about the upgrade, we add the product upgrade for the correct amount. Once billed, we duplicate the DEAL with the new total contract value.
As an example for DOWNGRADES:
I have a client with a 12.000 euros licence, billed each year on the 1st April, the ACV and ARR is 12.000 eur. In Jan, that clients decides to size down the licence to the lower level and take the 8,000 euros licence. I want to be able to track the 4,000 euros downgrade we did to report it in a waterfall diagram. I created a product "downsell" for that but I'm not sure it's the right way for doing this.
How do you guys do this ?
Solved! Go to Solution.
Nov 25, 2020 3:53 PM
Hi @OlivierBeaujean !
Interesting use case!
It will depend of the term of your contract but...
I would recommend creating a new deal for the upgrade or downgrade at the date of the change with a discount for the pro rated amount that was paid. It creates a new contract with a term of one year beginning at the upgrade/downgrade date
So for you upgrade use case:
12 000 / year = 1000 / month
4 month left = 4000 pro rated discount
So you create a new deal with a product at 15000 -4000 discount = 11 000 total
You can do something similar for downgrade as well
Don't forget to mark my reply as a solution if you are satisfied. If not, do not hesitate to ask me anything!
Dec 2, 2020 6:24 AM