This cost includes unlimited projects and users and every feature the tool offers. Flat-rate does not work well for companies in which resource costs might vary significantly from user to user, which is why flat-rate pricing does not generally work well for B2B (software-as-a-service) SaaS companies, for example.Įxample: A project management tool charges $150/month for the use of its platform. Simply put: Flat-rate is a single product and a fixed set of features at a fixed price per month.īest for: companies with a product that has limited features and a single buyer persona. Customers are charged the same amount each billing cycle. Subscription Pricing Models Flat-Rateĭefinition: Flat-rate, also known as fixed pricing, offers users a single price for all features of the offering. With models ranging from simple and fixed (e.g., flat rate) to complex and variable (e.g., usage-based), the options allow you to optimize your subscription offering for your target market.
In the first of our three-part series on pricing subscriptions, we will address the first question of choosing the subscription pricing model that best serves both the company’s and customers’ needs.
Congratulations! Now, a follow-up: How exactly will you price your new subscription?Īs tempting as it might be to “go with your gut,” that approach will likely prove a less-than-optimal strategy for monetization, as well as for customer acquisition and retention.
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