Best Practice Report

Making Sense Of SaaS Pricing Models

Understanding The Implications Of Leveraging A Usage-Based Pricing Model

August 5th, 2022
With contributors:
David Mooter , Sam Somashekar , David Morrison , Drew Zalucky

Summary

Pricing is a major component of the software-as-a-service (SaaS) business model. Companies should consider pricing decisions early in the development process and then model them carefully. Usage-based pricing has many benefits and can be the ultimate expression of value-based pricing. This report provides an overview of usage-based pricing, its pros and cons, considerations for implementation, and recommendations on how to deploy it as part of the pricing strategy.

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