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Updated by suhana vahab on Apr 16, 2025
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What Are The Best Pricing Models For SaaS Businesses?

Looking to monetize your SaaS product the right way? This list breaks down the most effective SaaS pricing models—from Freemium to Tiered Pricing—so you can choose the best strategy based on your product, market, and growth goals. Powered by Saaslogic, your all-in-one platform for subscription billing and revenue automation.

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1. Freemium Model

Offer a basic version of your SaaS product for free, with optional upgrades to paid plans for advanced features. Great for attracting users and converting engaged ones over time.
Tip: Best for tools with viral potential and low onboarding friction.

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2. Subscription Pricing

Charge customers a recurring monthly or annual fee for access. You can price based on usage, users, or features. This model ensures predictable revenue and scales well.
Example: Saaslogic supports monthly and annual billing cycles with automated invoicing.

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3. Usage-Based Pricing

Let users pay based on what they use—whether that’s data, storage, API calls, or time. Ideal for platforms with varying customer usage patterns.
Bonus: Encourages fair pricing and scalability.

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4. Tiered Pricing

Offer multiple pricing tiers—each with different features or usage limits. Customers can start small and upgrade as they grow.
Pro Tip: Clear tier differentiation helps reduce churn and upsell smoothly.

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5. Per-User Pricing

Charge based on the number of users in a team or organization. Popular among B2B SaaS companies offering collaboration tools.
Saaslogic Insight: Set up automatic pricing rules for user-based billing.

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6. Per-Seat Pricing

Similar to per-user pricing but typically used for more traditional software setups. Great for enterprise or desktop software.
Consideration: Include role-based access or user-type distinctions.

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7. Hybrid Pricing Models

Mix and match pricing models (e.g., base subscription + usage fees) to offer flexibility and increase revenue.
Why it works: Adapts to diverse customer needs and can unlock new revenue streams.

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Explore the Right SaaS Pricing Strategy for Your Business

Are you looking to implement flexible, scalable billing logic that supports all these pricing models? Explore Saaslogic — the smart subscription billing platform designed to adapt to your pricing strategy as you scale.