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Pricing Models

Common SaaS pricing strategies and how they work in practice.

F=

Flat-Rate Pricing

One price, full access. The simplest SaaS pricing model — and the one most companies outgrow first.

T#

Tiered Pricing

Multiple plans at different price points. The default SaaS pricing model — and the hardest to get right.

P:

Per-Seat Pricing

Charge per user. Revenue scales with adoption. Simple to explain, but it penalizes the behavior you want most: more people using your product.

U~

Usage-Based Pricing

Pay for what you use. The native pricing model for APIs, infrastructure, and AI — and the hardest to implement well.

C*

Credit Pricing

Buy credits upfront, spend them on actions. Prepaid predictability meets usage-based flexibility — but the abstraction has costs.

H+

Hybrid Pricing

Base subscription + usage charges. Where most mature SaaS products end up — because no single model captures value alone.