Top 6 SaaS Pricing Models and How to Choose the Right One

  • Freemium: the platform can be used for free, but with fewer features.
  • Feature-based pricing: the platform includes packages that contain distinct features.
  • Flat-rate pricing: users pay a fixed price for using your software, e.g. a fee can be charged monthly or once a year.
  • Per active user pricing: allows companies to purchase software for widespread use by only paying for active users.
  • Tiered pricing model: allows users with varying requirements and budgets to decide the most suitable set of services for them.
  • Per-storage pricing model: users pay for the space they need.
  • Conduct market research.
  • Find a balance between the value your customers get from using your software and the revenue you’re going to earn.
  • Knowing your LTV/CAC ratio allows you to understand whether your business is ready for sustainable growth.
  • A simple and clear SaaS model is a good chance to increase purchases.
  • It is possible to mix different SaaS billing models according to your audience and see what works for your business.
  • Measure your results.
  • You should always analyze your target audience, do enough research, choose the most appropriate pricing model for SaaS, and test what works for you.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Onix-Systems

Onix-Systems

Onix-Systems provides IT services in website, mobile app and emerging technologies software development. Check our blog -> https://onix-systems.com/blog