Table of Contents

About

A page about price, pricing model, monetization and compensation.

Monetization is the sum of all decisions taken about when, what for, and how much to charge for your product.

Price

Price of the solution is generally the price of the product.

Price vs Market

Market

Price Market 1b Formula

Price Market

where:

Example:

  • online course with over 1000 students charged 200

Other blog about it Are you hunting for mice, elephants or whales ? - Five years later: Five ways to build a 100 million SaaS business

Optimization

Price Optimization

where:

Price Variation Vs Sales Volume

Rule 10 - 5 - 20

  • 10x - if you spend 10 you will win 100
  • Then increase by 5% until you loose 20% of the customer

Fibonacci sequence

Your price may follow the Fibonacci sequence.

For example zappier 1) at 11, 23, and 58 for the Amp, Ohm, and Volt plans.

Promotion

Temporary low price

Scarcity sells: First 60 buyers got preferential pricing.

Model

Fair use policy

Fair use policy may be used as a pricing model.

For instance:

  • The product is free of charge and offered without guarantees.
  • If needed, we might introduce rate limits in the future.
  • We might introduce
  • a paid subscription for high-volume users.

other ways to say oit:

  • Unlimited : provided that our infrastructure is not affected

Donation

Ad supported

For pure-consumer products that are attention-oriented

Bundled with Hardware or Content

Software bundled with hardware or content.

End users seem to be fine with paying directly:

  • for hardware (smartphone, laptop)
  • or content (Netflix, Spotify).

B2B SaaS

A business has a problem; a software creator offers a web-based product that solves the problem. The business purchases directly from the creator, and continues to pay as long as they have the problem.

Referral

SAAS

Documentation / Reference