The Best Saas Pricing Model For Your Business

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What is the best SaaS pricing model for your business? With the industry showing no signs of slowing down in SaaS, the key principle of successful SaaS business is often based on understanding the market and being able to offer the right type of product with a higher-value pricing model that brings more revenue in the long haul. Here I will discuss in depth what are the four most popular SaaS pricing models and what are the main things to consider before choosing a particular pricing model for your business. Freemium is a SaaS pricing model that has gained the most popularity among all other pricing models in today’s industry offering free services or features that effectively attracts potential target audience and has a premium service…show more content…
Examples for this method are Zapier and Dropbox pricing model. 2) Feature based Freemium – Freemium pricing model where a customer can use a free version of the product and is able to access the key features when turns into a paid customer. Example for this model is LinkedIn’s premium subscription model where its users must upgrade to a premium in order to connect with other users outside their network. 3) Time-based Freemium – Freemium pricing model where a customer can access fully functional service for a certain period of time and experience a real value of a product to then decide whether they want to stay and pay for a premium package. SalesForce automation and CRM software is a good example of this model. 4) Use-case Freemium – a models where consumers that fall under a specific category like educational, non-commercial use, non-profit etc., can access this product for free or with a discount, for example, Adobe Creative Cloud. It is important to consider the costs to serve the free users when choosing a Freemium model as well as to consider how much value to give away for free in order to gain useful customer insights. Benefits of using Freemium models are a rapid and effective way to establish a target audience and gain a business value form free customers by leveraging marketing effects or making money with selling data or ads, as well as
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