Monetizing Value, Not Just Access
Pricing is the most powerful lever in a SaaS business. In the US, the trend is shifting from the traditional ‘Per Seat’ model to more dynamic structures.
Per-User Pricing (The Classic)
- Examples: Slack, Salesforce.
- Pros: Predictable revenue. Easy to understand.
- Cons: Penalizes adoption. Companies limit the number of accounts to save money, which reduces the ‘stickiness’ of the product.
Usage-Based Pricing (The Modern Trend)
- Examples: AWS, Twilio, Snowflake.
- Pros: Aligns cost with value. Small teams can start for cheap (or free) and scale up as they grow. Upside revenue potential is uncapped.
- Cons: Revenue is volatile and harder to forecast.
The Hybrid Approach
Many US SaaS leaders are adopting a hybrid: A base platform fee (or low user fee) plus usage tiers (e.g., number of emails sent, GBs stored). This captures the best of both worlds.
