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1 min readBusiness app pricing in 1 minute

Dom Marrone

At AppCity, we spend a lot of time thinking about business software pricing. Here, we'll break down the four most common SaaS pricing models, all in 1 minute.

Want a deeper dive? See this post for more detail.

1) Flat-rate pricing

A fixed price per month or per year for access to the app. Typically there are multiple pricing plans, where you can pay more for more features, users, etc.

Social media management tools like Buffer or Hootsuite have flat-rate pricing.

2) Per-user pricing

A fixed price per user on your account, paid monthly or yearly. This model also commonly has different pricing tiers, where more expensive tiers include more features.

Most CRMs, like HubSpot or Pipedrive, have per-user pricing.

3) Usage-based pricing

A variable price based on your usage of the app. For example, email marketing tools typically price based on the number of contacts or subscribers on your email list. You pay more as your email list grows.

Mailchimp and ConvertKit are good examples.

4) Revenue-fee pricing

Initially free to use, but once you start making money through the app, they take a percentage fee. You only pay when you make money.

Substack, a newsletter tool, is free to publish your writing. If you make your newsletter paid and start earning revenue, Substack takes 10% of that revenue.

Learn more about SaaS pricing with our deeper dive here ๐ŸŽ“

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