SaaS startups adopt each pricing strategy
Pricing is one of the most important strategies to build a business. Most SaaS startups use tiered pricing that offers multiple packages. Particularly, the following three pricing models are common to use.
- Per User Pricing
- Per Active User Pricing
- Per Feature Pricing
Let me give you a few examples.
1. Per User Pricing
2016 SaaS Survey shows that the most common primary pricing metric is Seats (35%). It’s simple, scalable, and predictable. However, users can share the account between multiple team members. Trello uses this model.
2. Per Active User Pricing
This model focuses on actual users of the software. Many SaaS companies those who target the enterprise adopt it. Customers can only pay for active users and it encourages them to spread your product. Slack is a good example.
3. Per Feature Pricing
Per feature pricing is a simple model that separates plans by functionality. It can be strong upgrade incentive and the developers can control their resources in accordance with the price. On the other hand, a profitable feature might be buried in the packages. Evernote provides per feature pricing.
