The pricing page is the deciding factor in whether you make or lose money. It’s your goal line, and it either sends numbers up on our scorecard for success (putting YOU at an advantage) or sinks us under pressure when someone else gets there first with their offer!
A lot can happen between now and then- but if we do things right; this one small step could propel everything forward into high gear while putting competitors onto probationary status.
This is a huge problem for SaaS companies because it’s difficult to price your product or service. If we want people to buy from us, then they need an incentive — which means that our prices are going to determine how much revenue is generated by each customer segment in total
A lot of businesses struggle with pricing their products and services; however, I am here today specifically talking about those who offer subscription-based offerings like software as opposed to one-shot deals where there’s no ongoing commitment.
Startup SaaS Pricing Pages
I went and looked at 100+ SaaS pricing pages models, and I want to go over some of the variations, plus the pros and cons of each different model. I also have a couple of examples of companies that pivoted from one model to the other, and how the transition went.
SaaS pricing model
The world of startups was essentially transformed when we figured out SaaS. When companies pivoted from a one-time sale to a monthly subscription, a whole world of possibilities was unveiled.
SaaS allows predictable revenue. It lets us estimate customer lifetime value with unprecedented accuracy. These days you can even raise capital or get a loan based on your MRR.
A flat SaaS model means that the platform has a fixed cost regardless of features or usage.
I won’t spend too much time on Flat pricing because in this day and age it is pretty rare. While it’s simple and very easy to explain to customers, flat pricing doesn’t allow upselling, which translates to negative churn, which is SaaS nirvana.
