Welcome to the world of SaaS pricing, where we will explore how companies decide on the prices for their digital tools. It's like finding the secret recipe to success in the software world.
Understanding how other companies set their prices can be super helpful for you. It's like getting insider knowledge to guide your decisions if you're running a business.
So, whether you're new to this or a seasoned pro, stick around to discover the art and science of getting SaaS product pricing done right in the Software-as-a-service world. Ready for the journey? Let's dive in!
10 SaaS Pricing Model Examples
Drift is a smart platform that uses artificial intelligence to understand and learn from buyers, creating personalized experiences. Now, when we look at its pricing option, it follows a value-based approach.
There are three pricing plans: Premium, Advanced, and Enterprise. Premium is great for small businesses, offering valuable features for better customer engagement.
On the other hand, Advanced and Enterprise plans provide custom pricing, meeting diverse business needs. Drift's tiered pricing ensures a personalized and scalable approach, catering to different-sized businesses.
Drift understands users' varied needs. Whether you're a marketer, sales professional, or part of a big enterprise, you can choose a plan that suits your usage requirements. This flexibility is handy for companies seeking basic features, allowing them to pick an option that fits their needs.
Must-know points about Value-Based Model
HubSpot uses freemium pricing model, a popular strategy in the B2B SaaS industry. This means they provide a basic version of their product for free, without the need for direct sales interactions or demos. The idea is to attract users with the free version and encourage them to subscribe for full features later.
With this SaaS pricing strategy, users can sign up for a trial with a simple process. This allows potential customers to try the product before deciding to buy. But, it avoids issues like users staying on the free plan, which can be challenging for businesses.
Must-know points about Freemium Model
Canva uses a pay-per-user pricing model, making costs simple and predictable for users. This model lets users trial the service with a couple of users before making a bigger investment, ensuring transparency in expenses.
Charging per user ensures a steady income for Canva, as users usually renew their subscriptions each month without much extra effort. However, managing seat licenses becomes crucial to avoid unnecessary charges under this pricing approach.
Canva's $30 per month pay-per-user option provides access to all Pro features for every paid user on the graphics or marketing team. This pricing suits both individual designers and larger businesses forming teams, offering a straightforward and value-based cost structure.
Must-know points about the Pay-Per-User Pricing Model
Wix has a smart pricing plan – a mix of tiered and usage-based SaaS pricing models. This means they let users try all the features in their plans, setting limits that nudge them to upgrade when they use them a lot.
Like many SaaS companies, Wix tracks how much users use features like Storage Spaces and Video Hours. When users get close to these limits, they're more likely to upgrade, following the plan's design to help users grow.
Must-know points about Tiered and Usage-based Pricing Model
5. Ixact Contact
IXACT Contact keeps it simple with a flat-rate pricing model. Everyone pays the same fixed rate, no matter how much they use it or what features they need. This kind of pricing works well for SaaS businesses with just one product and a steady group of customers.
With IXACT Contact, you get a clear price and even a free trial. The flat-rate model makes it easy for customers to know exactly what they're paying for.
Must-know points about the Flat Rate Pricing Model
AppCues keeps it simple with a tiered + active user pricing strategy, blending the best of both worlds. Their platform, which needs no coding, creates engaging product onboarding experiences and allows users to track and understand usage data.
AppCues has three tiers for small businesses, high-growth companies, and enterprises, perfect for different stages of a company's growth, ensuring flexibility and scalability.
Let's break down their pricing. The plans are straightforward, reflecting the value they offer. Starting at $249/month, each tier is designed for different customer segments or business sizes. This tailored approach means users get varying features, functionalities, and support based on their specific needs.
Now, here's where it gets interesting. AppCues follows the traditional tiered structure and factors in active users. This means the number of monthly active users influences the cost of the service.
This way, AppCues ensures a fair and value-driven cost structure catering to businesses of all sizes.
Must-know points about the Tiered + Active User Pricing Model
Mailchimp, the email marketing and automation tool, has a unique way of charging you based on how often you send emails. It's great if you don't send emails all the time.
You use a certain number of credits for each email you send and only pay for what you use. This flexibility lets you buy credits when needed, making it a customized and cost-effective choice.
Even though Mailchimp has other ways to pay, the pay-as-you-go or usage-based option is special for its adaptability. It suits people who don't send many emails, ensuring they only pay for the credits they use. This payment method is practical and efficient for those who don't email too often.
Mailchimp also has a free plan for up to 500 contacts and allows 2,500 sends every month. This free plan is a great way to get started, letting you explore what Mailchimp can do without spending money immediately.
With Mailchimp's type of pricing, you can control your email marketing costs based on how you use it and what you need.
Must-know points about the Pay-as-you-go Pricing Model
ChartMogul's way of charging keeps things easy and works for businesses with subscriptions. Businesses pay based on how big and successful their subscription is.
ChartMogul is fantastic because of its real-time insights into financial performance, thanks to how they charge. By basing the cost on recurring revenue, businesses get timely information to make quick decisions and adapt to changes in the market. It's like having a financial guide to help you navigate the world of subscriptions.
What makes this way of charging great is how much it covers. ChartMogul doesn't focus on the basics; it looks at a lot of important things for subscription model businesses.
It's like having a toolbox full of tools to understand and make subscriptions work better. This makes ChartMogul a reliable friend for businesses that want to do well in the world of subscriptions.
Must-know points about the Recurring Revenue Based Pricing Model
Gusto adopts a per-employee pricing or per-user pricing model for its payroll software, presenting businesses with tailored plans to suit their individual requirements.
The structure comprises three main plans: Simple, Plus, and Premium, along with a subscription-free plan for businesses employing contractors.
The Simple Plan costs $40 per month, with an extra $6 per employee. Moving up, the Plus Plan is priced at $80 per month, accompanied by a $12 per employee fee. Gusto offers a Premium Plan with custom pricing for businesses with unique needs.
The decision to employ per-employee pricing is rooted in its advantages for businesses:
Cost Control: This model allows businesses to scale costs with workforce changes. Thus, offering flexibility in budgeting.
Fairness: It aligns with the principle of proportional payment. Thus, it ensures businesses pay based on actual usage.
Feature-Rich Plans: Gusto's plans, even at the basic level, provide a robust set of features, accommodating diverse business sizes.
Transparency and Predictability: Per-employee pricing brings transparency and predictability to payroll costs, simplifying budget management.
In essence, Gusto's per-employee pricing model offers businesses a fair, flexible, and feature-rich solution. Thus, enhancing transparency and customization in payroll management.
Must-know points about the Recurring Revenue Based Pricing Model
Loom has done really well by using a smart tiered pricing model that helps all kinds of customers. This way, they can grow, show their value, and make customers stick around.
They even have a free Starter plan, so it's easy for businesses to start and change to different plans as they need more. Loom's clear prices, smart way of making money, and focus on what customers need to make it really attractive.
With three plans – Starter, Business, and Enterprise – Loom ensures everyone gets what they need. This way, each plan gives a lot of value and options. Their pricing plan is great for businesses at different points of growth.
Must-know points about the Tiered Based Pricing Model
Ready to take inspiration from the best SaaS Companies?
In summing up our look into the best pricing methods, it's clear that the world of (SaaS) is as varied as the businesses it supports.
From straightforward subscription plans to the smart appeal of freemium and adaptable tiers, there's the right pricing style for every situation.
As companies journey through the SaaS landscape, the main point is evident. It is that getting pricing right is a strong force, connecting customer expectations with excellent service and ensuring that every piece of software is worth it.
Which model example can be the best for your SaaS business? Tell us in the comments.
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