JavaScript is not available.

Patrick McKenzie on Twitter: "One of my favorite things to do is help SaaS companies with pricing. 10 Stripe Atlas companies let me redo theirs and publish the rationales underlying the recommendations https://t.co/CvteotlSFI Plus I've got some thoughts: / Twitter"

A SaaS pricing guide: SaaS pricing models, strategies, & examples

Pricing your SaaS product

The first lesson of monetization: pricing goes so much further than the actual price.

No matter the business you're in — non-profit, retail, SaaS, DTC, B2B, whatever — you've created some sort of value. You attach a unit of measurement to the value you created: your price. Put simply, your price is the exchange rate on the value you're creating in the world.

What influences price:

1. The segment and vertical you are targeting: You can go upmarket to customers who have higher willingness to pay, shift to a vertical that sees more value in your offering, or even change the ideal customer profile entirely.
2. Your product, positioning, and packaging: You can come out with new features, move features to different tiers, pull features out and make them add-ons, change up your value propositions, etc.
3. Your price: You can move your price up or down, which will impact conversion obviously, but will also impact the perception of your brand.

In the beginning, the actual number you're charging isn't that important.

A “value metric” is essentially what you charge for. For example: per seat, per 1,000 visits, per CPA, per GB used, per transaction, etc. If you get everything else wrong in pricing, but you get your value metric right, you'll do ok.

• Pricing based on a value metric (vs. a tiered monthly fee) is important because it allows you to make sure you're not charging a large customer the same as you'd charge a small customer.