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Pricing Models

Common software pricing strategies. The right model depends on your value metric, customer segment, and competitive landscape.

Syntax

business-and-strategy
// Choose based on: value metric, customer type, usage patterns

Example

business-and-strategy
// FLAT-RATE / SUBSCRIPTION
$29/mo per user — simple, predictable
Best for: broad market, low complexity

// USAGE-BASED
Pay per API call, token, or GB — aligns cost with value
Best for: developer tools, infrastructure
Risk: unpredictable revenue

// TIERED (most common SaaS)
Free | $29 Starter | $99 Pro | $499 Enterprise
Best for: broad audience with different needs

// PER-SEAT
$15/user/month — scales with org size
Best for: B2B collaboration tools

// FREEMIUM
Free forever (limited) + paid upgrade
Best for: high-volume consumer or PLG products
Risk: high support cost, low conversion

// VALUE-BASED
Price = % of value delivered (common in enterprise)
Best for: clear ROI (saves $X, earns $Y)