SaaS Pricing Strategy: The Ultimate Resource Guide

Share this post

Developing a pricing strategy is one of the most important business decisions you will ever make. It will determine your position in the market and even decide whether your business will be profitable or not.

However, if you want to craft an effective pricing strategy, you need to do your homework. To help you out with that, this resource guide compiles the best articles, books, and resources on SaaS pricing strategy from around the web. Learn the basics of SaaS pricing, testing and improving your pricing strategy, and avoiding common mistakes.

Hope this helps!

 

SaaS Pricing Basics

This section helps you get started with the basics of SaaS pricing. From developing your buyer persona to packaging your plans, you’ll learn how to develop an effective pricing strategy that helps you succeed!

Lean Pricing: Pricing Strategies for Startups by Omar Mohout

If you’re looking for a no-nonsense, ready-to-apply comprehensive guide for creating and reviewing your pricing strategy, check out Lean Pricing. Startup growth engineer, Omar Mohout starts out by revealing various pricing models used by successful companies. Then, he provides actionable steps, examples, and case studies to help you create an effective pricing strategy for your business.

Developing Your Pricing Strategy by Christopher O’Donnell

If you’re looking for an introductory guide to developing your SaaS pricing strategy, look no further. This free e-book by Price Intelligently gives you an intro to the art and science behind SaaS pricing. Learn the basics about value metrics, packaging and bundling your plans, and ways to use discounts without damaging your perceived value.

How to find the best pricing strategy for a SaaS product by Andrew Gierer

Did you know that improving your pricing strategy can give you a much bigger ROI than A/B testing every little detail on your website? This article guides you through each step of the pricing process – from quantifying buyer personas, determining value metrics, to pricing your product.

Scalable Pricing: A Key Tool for SaaS Success by David Skok

Scalable pricing is a great way to grow your revenue from customers that are willing to pay, without turning off customers that are unable to pay high prices. This post by serial entrepreneur and VC, David Skok covers the various types of scalable pricing and shows how you can increase your profits by providing more value to customers.

 

Changing and Improving your Pricing

If you’re trying to evaluate and improve your pricing strategy, these articles should help you prepare for, launch, and handle pricing changes effectively.

A Complete Guide to Changing Your SaaS Pricing by Patrick Campbell

If you’re trying to change your SaaS pricing, but unsure about how to implement these changes, this is the guide for you. It starts with steps you need to take before implementing your pricing change, and then gives you practical ways to handle these changes with existing customers and prospects.

How to Successfully Increase Your SaaS Prices by Steli Efti

Want to increase your prices but afraid of customer backlash? Close.io’s Steli Efti covers how his team increased prices successfully with a little bit of planning. Learn how to tell existing customers about the increase and how to handle existing customers or current trial users.

Is Raising Prices The Simple Key To SaaS Success? by OpenView

This article claims that very few SaaS businesses can scale (or let alone survive) by selling their products at low prices. Should you increase your prices? If so, what are some effective ways to test and implement these price increases? This article covers just that.

 

Freemium

While offering a free plan can help drive new sign ups, these users can also overwhelm your company’s financial and labor resources. Read these articles to determine whether you should even offer a freemium plan, and if so, the effective and profitable ways to do so.

SaaS Freemium: How to Succeed and How to Fail by Kate Harvey

Find out the pros and cons of offering a freemium plan. Then, learn the proper ways to implement freemium along with concrete examples of how successful companies used it to drive growth.

Should You Drop Your Freemium Model? How One Company Killed Its Free Plan and Grew 40% by Josh Pigford

Like most SaaS companies, PopSurvey offered a free plan with hopes to drive new sign ups. But with higher than expected customer churn, founder Josh Pigford decided to drop his freemium plan, eliminate his trial period, and double the prices of his subscription plans. The result? A 40% increase in revenue in the first month. Should you drop your freemium plan too? Read this article to find out.

SaaS Pricing: Our Big Free Plan Mistake by Dave Nevogt

Considering a freemium model but not sure how it’ll play out? Read Hubstaff’s story to find out why their free plan didn’t work, the lessons they learned, and what they did instead to boost their revenue.

There are 7 Types of Freemium and Why That Matters… by Lincoln Murphy

Thought there was only one type of freemium? Think again. This post by customer success evangelist, Lincoln Murphy covers seven different types of freemium business models. If you’re dead set on offering freemium, this is a great way to find a freemium model that works for you.

Forget Freemium: Why It’s Killing Your Pricing Strategy by Patrick Campbell

In this article, Patrick Campbell, CEO of Price Intelligently, argues that Freemium is a marketing strategy – not a revenue model. Learn why freemium can kill your business, where freemium is appropriate, and healthy ways to implement “freemium like” strategies.

 

Common Pitfalls and Lessons

If you’re new to SaaS pricing, you may be prone to making rookie mistakes. Read these very personal posts from SaaS pricing veterans to avoid common mistakes and to save yourself the trouble.

What I Know About Pricing SaaS Products by Jim Semick

What’s the proper way to price your SaaS? In this article, Jim Semick who helped price successful products like GoToMeeting, AppFolio, and Product Plan shares the common pitfalls and lessons he learned along the way.

The Decision Process for Raising The Price of My SaaS App by 66% by Dodd Caldwell

In this blog post, Dodd Caldwell, founder of MoonClerk, explains the process he went through for raising the price of his SaaS. From the thoughts in his mind, the lessons he learned, to how the price increase affected his business, you’ll discover what SaaS founders go through during this arduous process.

What I Learned From Increasing My Prices by Ruben Gamez

In this blog post, Ruben Gamez, founder of Bidsketch, shares the lessons he learned from increasing his prices. He explains what was wrong with Bidsketch’s old pricing plans and shows you how he structured, tested, and decided on his new pricing strategy.

The Black Arts of SaaS Pricing by Patrick McKenzie

Many SaaS founders arbitrarily price their products based on how competitors price their SaaS. This post explains why that’s a common mistake and shows you easy and practical ways to test and determine your pricing strategy.

 

So what do you think?

Are there any articles or resources I missed?

How about articles you’ve found particularly useful?

Please let me know in the comments below! Thanks.

 

by Alex Lee

photoalexlee

Alex is a copywriter who specializes in writing websites that sell and convert for SaaS and software companies. Learn more about him or follow him on Twitter for the latest SaaS articles.

In this article


8 comments

  1. kevinsyun

    Great list Alex! Thanks for the write-up. We’re building https://AdCat.io, a design tool for advertisers to create lightning-quick perfect-sized images for their ads.

    I’ll be reading a couple items here and drawing some insights for pricing, which is something we’re working on!

    1. Alex Lee

      Hey @kevinsyun:disqus, Thanks for the comment. Hope it helps with your pricing strategy 🙂

      I just checked out your website and AdCat looks really useful for folks using social media to advertise and distribute content (including myself)! Thanks for sharing!

  2. Kate H

    This is a great list of resources! Honored that you included Chargify’s freemium blog among them.

    1. Alex Lee

      Thank you for your kind words Kate! I’m even more thankful for your very helpful and informative post! 🙂

  3. EtienneJ

    Epic. Thanks.

    1. Alex Lee

      @EtienneJ:disqus Thanks for your kind words! Hope it helps you with your pricing strategy! 🙂

  4. Rolleer

    A perfect domain for freemium pricing strategy: Freemium.io is available on Flippa: https://flippa.com/7800851-freemium-io

  5. Erika Parker

    It`s a great list, thank you.

    Pricing is a very effective tool, but it`s easy to screw it up. Nailing your pricing strategy requires more than just picking the optimal price and forgetting about it. It needs to be continuously monitored to ensure you’re effectively landing, expanding and retaining your customer base.

    Not long ago my company faced the problem of choosing pricing strategy. And I can say it`s hard work! I mean reading, collecting, analyzing tons of information, articles, notes of professionals.

    Then I stumbled upon the article “SaaS Pricing Models: How the Right Pricing Will Help You Earn a Fortune.” https://kraftblick.com/blog/saas-pricing-models/

    And you know, I would surely add it to your list – the article completely satisfied my thirst for knowledge.

    Thanks to this blog post my company didn’t make the most common mistake – relying on pricing models of competitors. Instead, we interviewed customers and carried out an analysis to choose our appropriate pricing strategy.

    So I sincerely recommend to read it before you fail your business making wrong pricing model. There you can find examples of company and explanations why they use this or that pricing model and some useful tips to begin with.

Comments are closed.