SaaS Interview Question: Bring on a multi-billion dollar enterprise client on at $1M / year or $300K / year?
Is there a correct way of answering this question? Or is it more about demonstrating ability to think both sides of the argument?
During an interview, I said that bringing on for $300K / year could be the better long-term option since the goal of SaaS companies is to keep customers "for life," and a lower cost might contribute to better adoption. Even though I know $1M for a multi-billion dollar enterprise is likely a drop in the bucket when considering overall share-of-wallet. Interviewer seemed to prefer an answer of immediate higher ARR / ACV.
I know it's largely dependent on the company's goals / strategy, but what's the best approach to these types of questions?