Usage-based pricing is on the rise
Historically, user or seat-based pricing has been most popular with usage-based pricing a distant second.
A Pacific Crest study from 2014 found that 37% of companies primarily charged based on users while 23% charged based on usage.
Well, it looks like usage-based pricing is finally catching up. In our latest survey, 39% of companies charged based on usage.
This has real advantages for SaaS companies:
- It reflects the business value being unlocked by the product
- It allows customers to start small and trial a product
- It provides a seamless expansion path as customers get hooked on a product
Most relevant during:
GTM Fit phase
Scale phase
PMF phase
Most relevant for:
ACVs < $15K
ACVs $15K-$50K
ACVs > $50K
