Which are the most common SaaS pricing models?
The most common SaaS pricing model is a monthly or yearly subscription. Different companies, however, base this on different time periods or pricing variables. Finally, the best pricing model is the one that gives you the most value while allowing you to expand your business indefinitely.
Never charge your customers for a product that they do not require. Monthly subscription pricing, for example, is most common with SaaS products. Monthly pricing, on the other hand, is best suited for products that do not require a large upfront investment to set up and maintain. A yearly subscription model is typically best suited for products with a high initial outlay, such as those that require licenses, technical support, or maintenance.
The most common SaaS pricing models, according to Gartner, are Pay-As-You-Go, License, Fixed-Price, and Usage-Based. These are known as the 3P models. However, these are only rough estimates of how SaaS pricing works. In reality, there are numerous pricing models available, including per-customer-per-month with a usage cap, tiered pricing, usage-based charges, and many others.