SaaS Product Pricing
- 15 May 2024
- 3 Minutes to read
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SaaS Product Pricing
- Updated on 15 May 2024
- 3 Minutes to read
- Print
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In this Article
SaaS offers are structured around one of two pricing models: flat rate or per user. Each offer must adhere to a consistent pricing model across all its plans. In simpler terms, you can't mix and match within an offer—every plan within it follows the same pricing approach.
SaaS pricing models
Pricing Model | Description |
|---|---|
Flat Rate | Enable access to your offer with a single monthly or annual flat rate price. With this pricing model, you can optionally define metered plans that use the marketplace metering service API to charge customers for usage that isn't covered by the flat rate. For more information on metered billing, see Metered billing for SaaS using the commercial marketplace metering service. |
Per User | Enable access to your offer with a price based on the number of users who can access the offer or occupy seats. With this user-based model, you can set the minimum and maximum number of users supported by the plan. You can create multiple plans to configure different price points based on the number of users. These fields are optional. If left unselected, the number of users will be interpreted as not having a limit (min of 1 and max of as many as your service can support). These fields can be edited as part of an update to your plan. |
Note:
After your offer is published, you can't change the pricing model. In addition, all plans for the same offer must share the same pricing model.
SaaS billing terms and payment options
In the commercial marketplace, SaaS offers provide customers with flexibility in billing terms and payment options. The billing term represents the duration of the commitment, which can be 1 month, 1 year, 2 years, or 3 years. Customers can choose to pay upfront or in equal installments, depending on the offer's payment options.
This table shows the payment options for SaaS offers in the commercial marketplace:
Billing Term | One-time upfront payment | Monthly equal payments | Annual equal payments |
|---|---|---|---|
1-month | Yes | NA | NA |
1-year | Yes | Yes | NA |
2-year | Yes | Yes | Yes |
3-year | Yes | Yes | Yes |
You have the flexibility to set up multiple billing terms for a plan, each with its own payment option (monthly or annual) and corresponding price. This allows you to offer different pricing incentives based on the duration of the commitment. For instance, you could promote longer-term subscriptions by offering a 2-year billing term at $150.00 or a 3-year term at $120.00.
Note:
Only one payment option is supported for a billing term on a given plan. To offer an additional payment option for the same term, you can create another plan.