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Fixed / flat-rate pricing model
Fixed pricing stays simple: a single product, a fixed set of features, and a fixed price per month.
Flat-rate pricing is easier to communicate and easier to sell. Adding valuable features? Raise your rate. Additional products? The fixed price goes on top of your base fixed rate.
But while flat-rate subscription pricing might be easy for potential customers to understand, it often means leaving money on the table. Keeping prices low means missing out on additional revenue from larger companies; and vice-versa, smaller companies might be priced out of higher-cost tools.
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Per unit/user model
Per-user pricing is the go-to model for the majority of subscription companies. Pricing scales evenly along with the number of users — the more users, the more you can charge.
Charging for each new user ...
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55 reads
Tiered pricing model
Allows companies to offer multiple packages with different features and product combinations available at different price points. The number of packages can vary, but most subscription companies offer two or three pricing tiers.
Beyond two or three options, however, things start to go downh...
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Usage model
Usage-based pricing is somewhat less common among SaaS businesses— it's mainly used by telecommunications companies and IT services.
It makes it easier for small companies to get started with your product while avoiding the high upfront fees charged by some subscription companies. On the ot...
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53 reads
Overlooking a core revenue driver
Companies spend countless hours improving their product, tweaking their positioning, and acquiring new customers. Yet most subscription companies spend precious little time thinking about their pricing.
Data from 512 companies shows that monetization has nearly 2x...
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I came across these ideas while reading growth.design case study for Zapier Upgrade: https://growth.design/case-studies/zapier-upgrade
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