Per-user pricing is a common strategy where you charge based on the number of users (or seats), especially amongst B2B SaaS companies. A subset of usage-based, user-based pricing is appealing because revenue goes up as the customer size does, as well as being a straightforward pricing model to understand.
As a customer onboards more teams, revenue increases. This means there is usually a direct correlation between customer growth and revenue.
Some other pricing models, such as feature-based or product based, can get very complicated very quickly. With a user-based model, its very simple - customers get charged based on the number of users registered in the product.
Customers are not going to be motivated to onboard more of their teams if they are charged more for doing so. This negative incentivization leads to a host of problems, including:
An excellent value metric is one that directly impacts the value a customer gets from a product. A lot of times, it doesn't matter to a customer whether they have three users or hundreds using a product, meaning the value gained from the product is not related to the number of users and is, therefore, a poor value-metric.
SaaS companies whose product's value is directly tied to the number of users are an ideal case for charging per user. It's often very tempting to charge based on number of users because its a very popular model, but companies are often better off charging for a different value metric.
The implementation in Stripe Billing is very simple, create a plan, and change the quantity based on the number of users. A company can add multiple tiers by having multiple plans.
The implementation in Stripe Billing is very simple, create a plan, and change the quantity based on the number of users. A company can add multiple tiers by having multiple plans.
