Finding the right balance between value and revenue — your ability to help customers and receiving appropriate compensation for that assistance — will make or break your SaaS company.
Undercharge, and you’ll cripple your business with uncompensated development and distribution costs; Overload, and you will stunt your growth and drive away thousands of customers.
To help you get the most out of your SaaS product, I’m looking at seven major SaaS pricing models and exploring the pros and cons of each.
Whether you’re tied into tiered pricing or frustrated with freemium, the pricing models covered here will help you identify the optimal way to market, sell, and grow your SaaS business.
Types of SaaS Pricing Models
1) Flat-rate pricing model
Flat rate pricing is probably the easiest way to sell a SaaS solution: You offer a product, a set of features, and a single price
The method is based on a “one size fits all” pricing strategy, and you charge your customers the same amount.
As such, flat rate pricing bears a lot in common with the software licensing model used before cloud infrastructure, but with the added benefit of (usually) monthly bills.