What Is a Ramp Deal?
A ramp deal is a SaaS contract with scheduled pricing increases over time. It allows a customer to start small and grow into a larger contract—usually aligned with expected usage or adoption. Ramp deals are sometimes also referred to as step-up pricing or declining discount contracts.
Example
Year 1: $2,000/month
Year 2: $4,000/month
Year 3: $6,000/month
The contract is signed upfront but ramps over time.
Why This Matters (To SaaS & Finance Teams)
Ramp deals are great for new customer acquisition—but painful to manage manually. Without automation, you’ll misbill customers, miss revenue, or break your revenue recognition.
Ordway handles ramp deals natively—automating future price changes, adjusting deferred revenue schedules, SaaS metrics (ARR/MRR), and syncing everything to the GL so Finance doesn’t chase spreadsheets.
How It Works (Break It Down Simply)
- Contract signed with scheduled pricing increases
- Revenue schedule created for year one pricing
- First year invoice sent and payment collected.
- ARR/MRR and SaaS metrics updated to include year one monthly recurring revenue
- Pricing adjusted for year two
- Revenue schedules and ARR/MRR SaaS metrics updated to reflect year two pricing
- Second year invoice sent and payment collected
- Pricing adjusted for year three
- Revenue schedules and ARR/MRR SaaS metrics updated to reflect year three pricing
- Third year invoice sent and payment collected
- Forgetting to adjust revenue schedules
- Hardcoding future rates in spreadsheets
- Errors in rev rec if revenue isn’t spread correctly
- Sales, Finance, and CS all tracking different amounts
- Forecasts overstated if ramps aren’t modeled accurately
Best Practices
- Automate ramp schedules in your billing platform
- Sync ramp logic with CPQ and CRM
- Validate revenue recognition policies aligns with ASC 606
- Forecast ARR by ramp stage, not just full contract value
- Communicate ramp milestones to Customer Success for account planning
When to Use Ramp Deals
- New customer acquisition large customers with phased rollout plans
- Aligning pricing with forecasted adoption
- Supporting startup/scaleup whose budgets are forecasted to grow
- Strategic accounts where longterm value > initial ACV
- High ACV deals requiring lower entry point to close
KPI Impact / What It Affects
- Impacts ARR and MRR timing
- Affects average deal size metrics
- Influences revenue forecasts and renewal base
- Changes ACV/TCV reporting
- Ties into sales comp plans and quota timing
Real SaaS Takeaway
Ramp deals win deals—but without automation, they’re a mess. Ordway tracks ramp terms, triggers future billing changes, and ensures accurate revenue and metrics—no manual intervention needed.
FAQ Section (Quick Answers to Real Questions)
What is a ramp deal in SaaS?
A contract that starts small and grows in price or volume over time.
How does a ramp deal affect revenue recognition?
Revenue must align with value delivered over time, even if pricing increases—per ASC 606.
Do ramp deals help with new customer acquisition?
Yes—by reducing entry friction and giving customers time to scale.
Want to Go Deeper?
See how Ordway automates ramp deal pricing, rev rec, and billing changes over time. Request a demo
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