B2B SaaS Pricing Models
Delivered October 15, 2019. Contributor: Dagmawit W.
Goals
To understand B2B SaaS pricing models, their psychology, and companies that use these models.
Early Findings
PRICING MODELS
- This pricing model allows users to have access to certain features while offering the option for an upgrade.
- This pricing model allows access to certain features or for a limited period of time while encouraging users to buy the paid plan for additional features.
- This pricing model has been used for several years.
Advantages
Disadvantages
- This model is not ideal for making a profit and the company's revenue may be hit hard for a while.
- There is a risk that once the free period is over, users may simply discard it, increasing the churn rate.
Companies that offered freemium pricing successfully
OTHER PRICING MODELS
- This is a pricing model that charges a flat rate fee regardless of the number of users.
- Buffer uses this pricing model. It offers three plans: pro, premium, and business.
Proposed next steps:
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