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You’ll also need to consider how you’ll price different levels of service, such as premium support or additional storage.

You’ll need to carefully consider how your pricing will scale as your customer base grows.įor instance, you’ll need to decide whether to charge customers based on the number of users, features used, or some other metric. However, subscription-based pricing can be complex to set up and manage. This pricing model is often the fairest to customers, as they only pay for the time they use the software. In this model, users pay a recurring fee, typically on a monthly or annual basis, to access the software. Subscription-based pricing is the most common SaaS pricing model. Now that we’ve covered the basics, let’s take a closer look at each of these SaaS pricing models. It depends on your business model, goals, and target market. Ultimately, there’s no “right” way to price your product. Some others, like HubSpot, use a freemium model where they offer a basic version of their software for free and charge for premium features. For example, they might offer a subscription with usage-based pricing for additional features. Some companies mix and match these models to create a hybrid pricing strategy. This is similar to usage-based pricing, but it’s typically measured in a more abstract way, such as the number of “projects” or “teams” they create.

Feature-based: Customers are charged based on the features they use.This could be measured in the number of users, API calls, or any other metric that makes sense for your business. Usage-based: Customers are charged based on their usage of your software.Subscription-based: Customers pay a recurring fee, typically on a monthly or annual basis, to access your software.They determine how you charge customers for your product and services. SaaS pricing models are the foundation of your pricing strategy. Factor 1: The Nature of the Problem You SolveĪ Quick Introduction to SaaS Pricing Modelsīefore we dive into the details of each pricing model, let’s quickly review the basics.How to Choose the Right Pricing Model For Your Business.A Quick Introduction to SaaS Pricing Models.