Pricing
The Complete Guide to SaaS Pricing Models
February 28, 2024
12 min read
Pricing is make-or-break for SaaS. Choose wrong and you'll struggle. Choose right and you'll scale. Here's everything you need to know.
5 Main SaaS Pricing Models
1. Flat-Rate Pricing
One product, one price. Simple and predictable.
Example: $99/month for all features
Best for: Simple products, small markets
Pros: Easy to sell, low churn
Cons: Leaves money on table
2. Tiered Pricing (Recommended)
Multiple plans at different price points.
Example: Starter ($49), Pro ($99), Enterprise ($299)
Best for: Most SaaS products
Pros: Captures all customer segments
Cons: Can confuse customers
3. Per-User Pricing
Charge per active user/seat.
Example: $15/user/month
Best for: Team tools
4. Usage-Based Pricing
Pay for what you use.
Example: $0.01 per API call
Best for: Infrastructure tools
How to Price Your SaaS
- 1.Calculate costs: Know your CAC, server costs, and support expenses.
- 2.Research competitors: What are similar products charging?
- 3.Talk to customers: Ask what they'd pay before launching.
- 4.Start higher: It's easier to lower prices than raise them.
- 5.Test and iterate: Pricing is never "final." Keep optimizing.