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Research Outline
Prepared for Marion S. | Delivered October 15, 2019
B2B SaaS Pricing Models
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Goals
To understand B2B SaaS pricing models, their psychology, and companies that use these models.
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Early Findings
PRICING MODELS
1.
Freemium
Pricing
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
The psychology here is that users get to interact with a product
immediately
.
The
adoption hurdle
is easier to navigate when users have immediate access without any financial commitments.
If any
issues
are identified, it would be easier to
revise and re-market.
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
Hootsuite
,
Echosign
, and
Trello
.
OTHER PRICING MODELS
2.
Per user
pricing
This is one of the
most popularly used
models whereby the pricing is per user.
Salesforce
is one of the companies that uses this model.
3.
Per active user
pricing
In this model, subscribers are charged for
each active user.
Slack
uses this pricing model.
4.
Flat rate
pricing
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.
5.
Per feature
pricing
In this structure, the user is charged a
dynamic fee
depending on the
features
selected.
Leadpages
uses this pricing model.
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