Top 5 SaaS Subscription Models For 2024
Are you snooping to find the best SaaS subscription model for 2024? SaaS plays a crucial role in developing your business with modern strategies. Whether you’re a startup or an established organization, selecting the right SaaS subscription model is mandatory.
Subscribing the correct SaaS service will make sure you get all the sales by grooming your business with advanced trends. Various SaaS pricing models have been discovered till today to boost business revenue.
Here are the best 5 SaaS subscription models to pick out in 2024.
1- Tiered Pricing Model
The tiered pricing model is the most common SaaS subscription model. It comes with a bundle of packages, each with its own price and features. You can pick any package according to your budget and business needs. Tiered pricing is the finest subscription model for companies that offer a vast range of features.
Let’s unveil a few examples of tiered pricing.
- Hubspot
- Clearscope
- Salesforce
- Spoak
Pros
- Customization
- Scalability
- Clear value proposition
Cons
- Too many options will make it hard for customers to select any one tier.
2- Flat-Rate Pricing
The Flat-Rate pricing model is basically known for the “one size fits all” strategy. The Flat-Rate subscription model offers a fixed-price plan with single features for all customers. You don’t have any choice to select or customize the pricing package. So. this pricing model can not be adapted by all businesses.
Here are examples of a few firms using the flat-rate subscription model.
- Superhuman
- Instacart
- Basecamp
Pros
- Predictability
- Simple pricing structure
- Comprehensive
Cons
- Restricted Scalability
3- Feature-Based Subscription
As the name illustrates, the Feature-based subscription model will only charge you for the feature you need. You can also add more features by upgrading the package just like tiered pricing. Customers are more attracted to the feature-based pricing model as they know what they’re paying for.
Let’s dive in and see the companies utilizing this pricing model.
- Shopify
- ClickFunnels
- Trello
- Zoho
- Dropbox
Pros
- Clear Value Proposition
- Personalization
- Adaptability
Cons
- Feature Silos
4- Usage-Based Pricing
The Usage-based pricing model is commonly used in various industries as you pay for what you use. In this pricing model, you’ll pay according to your consumption of a feature. The usage can be accurately measured, just like your electricity and water bills.
The usage-based subscription model is beneficial for both startups and big guys in the business globe. Let’s explore the example of this pricing model together.
- Twilio
- Asana
- Zapier
Pros
- Transparency
- Scalable
- Higher customer satisfaction
- Foreseeable Revenue
Cons
- Limited Flexibility
5- Freemium Subscription Model
The Freemium subscription model is the best model among all as it gives you a free basic version of the software. You can also purchase premium features if you need them. Some SaaS companies have also paired Freemium pricing with other pricing models, such as tiered pricing.
Here are a few examples of successful models in SaaS.
- Dropbox
- Grammarly
- Slack
- Spotify
- Zapier
Pros
- Referral Potential
- Lesser Entry Barrier
- Lead Generation
Cons
- Conversion Challenges
Bottom Line
Now, you can boost your business growth by selecting any SaaS subscription model. The pricing models explained above will give you modern solutions to stand your business in big players. We aim to help readers stay on top of the latest trends. You can also share your ideas with us.
