A bad pricing model will impede growth and can even doom an otherwise promising startup, whereas a good model will capture some of the value that a product creates as revenue.
Of the 300+ services that Amazon Web Services (AWS) has released over the years, not a single one has needed to be rolled back from being priced incorrectly. That’s no accident.
SaaS companies have been ditching traditional subscription pricing in favor of usage-based models that better align with modern buying behavior and the value delivered by their products.
Has usage-based pricing gone mainstream? Out of nearly 600 SaaS companies surveyed, 45% said they are using this flexible pricing model, up from 34% in 2020.
Public SaaS companies that have adopted usage-based pricing are better at landing new customers, growing with them and retaining them.Â