Welcome to the ultimate guide on pricing a SaaS product where I've covered all types of pricing models that you'll come across for SaaS product and the Pros and Cons of each strategy based on the type of product you have.
In this guide, I'll share a few personal experience while experimenting with multiple pricing strategies in different products.
Flat Rate Pricing
Tiered Pricing
Lifetime Pricing- this is a suitable model for products that are not used frequently by a user but the need arises a couple of times every year.
Usage Based Pricing- Usage based pricing makes sense when you incur substantial costs in terms of servers, support etc. in order to support high usage and you don't want to charge users with limited usage to pay for that higher cost.
User Based Pricing- if you're in a B2B business model where your product will be used by multiple members of a team, this type of model makes sense.
Feature Based Pricing- Some SaaS software are designed for a wide range of users. They can be used by solo entrepreneurs as well as enterprises. In those cases the highly advanced feature sets can be bundled in the higher priced tiers range.
Freemium Model- freemium models can be of various types and each of them come with their own pros and cons.