SaaS Pricing Models (The Smart Way to Price Your SaaS Business to drive LTV and Net Retention)

SaaS pricing models |

When I started building my last startup, we really had to figure out how we wanted to price our SaaS product.

Did we want to do it by a per seat basis? Per month or per year? $29 or $49? There were endless options.

So, I asked the experts and started reading the best books on SaaS pricing strategies. I still made missteps over the course of building that startup, but I really learned what worked and what didn't in terms of having a sound b2b pricing strategy.

From this personal experience and my decade-long stint in the SaaS industry, I came to the conclusion that there are four key principles every SaaS business should think about when pricing their product.

In this video, I give you rundown of what I've learned about pricing SaaS and the four principles you absolutely must know when it comes to pricing your SaaS product the smart way.

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VIDEOS MENTIONED

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PLAYLISTS TO WATCH NEXT

1) SCALE AND GROW YOUR SAAS STARTUP WITH AN UNSTOPPABLE GTM

2) CREATE AND EXECUTE ON AN UNSTOPPABLE STRATEGY FOR YOUR STARTUP

3) QUITTING YOUR JOB AND STARTING A SAAS BUSINESS

4) RUN YOUR LIFE LIKE A PRO ATHLETE TO MANAGE FOR BURNOUT AND DRIVE PEAK PERFORMANCE AS A STARTUP FOUNDER

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^^ How I quit my finance job, built, scaled and sold a venture backed startup, and then helped sell the company that bought mine for $4.75bn. Here’s my crazy founder story.

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Say hi on social 👋:

#tkkader #saaspricing #saasbusiness

[TKKader]

Are you an Unstoppable fan? Hit me up in the comments below and introduce yourself and tell me what you're working on! 👇

[chilledfries]

I am mesmerized, researching on Saas for my B2B business and I am speechless. Thanks for the mentorship😍

[IdowuObadeyi]

Many angels in human form on this YouTube platform. God bless you man!

[matthiassainz]

TK, you have no idea how helpful this is... Thank you 🙏

[AmazingGrace]

SaaS like Google sheet, adobe products, zoho products - they build products which requires less than 10% customizations

Saas products like Shopify may require 50% customisation as per client needs.
So it's technically saas price + customisation price.

What's the best strategy for pricing in the second case

[lilbrusselsprout]

When offering training / onboarding, would the monthly fee be higher indefinitely? In other words, if I pay a premium for training and onboarding, once the training/onboarding is finished, why would I keep paying the premium? Or does this benefit only work if it is bundled with other premium features, such as advanced analytics?

[shyamalmunshi]

I love your energy! Thanks for sharing this, and you should consider teaching at a business school :)

[mdshiraz]

Hi TK, it was nice description for a startup. We have a health care saas business model startup, we are working on the unit service pricing but quite not able to figure out.
What would you suggest in this case?

[yhdesai]

Summary

1. Be either the cheapest in the market or the most expensive
2. 10$, per user, per month, per project.
the more successful the user is, the more money they spend with you
3. Offer more add-ons (enterprise, training)
4. Enforce a pricing floor

[alxleiva]

Hi TK, what about in cases where you're building a product that does not exist? The only think I can think of is calculating how much time the customers are saving by using my product. (I built a tool that converts a single image into a playable world for a game engine)

[ulvinasibli]

It was great video but one question: If there is a 3 tier pricing strategy laid out on the website, where and how to communicate the enforced mimimum platform fee to customer? @TK Kader, thanks in advance

[GaryTaylorvw]

£45 on Amazon for the book, is it worth it?

[zongri]

Hello TK, I just started watching your videos and they are very informative. I own a web design agency, planning to convert as a SaaS based solution. Can you pls advise?

[michaelmanjarres]

Great Stuff, Would love to connect via zoom if possible? Launching a business.

[victorlee]

TK, in this pricing strategy, the cheapest is USD$30 with free trial? Ps: I need this t-shirt you are wearing. 😂

[thepourfar]

amazing as always but TK please please talk slower. our english are not good enough😭😭😭😭

[azizabbas]

Tk I love your content, but it's far too long imo, wish there's a summary or short version of each video