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In this video, I share 5 SaaS pricing models that you can use to price your product effectively. What does an effective SaaS pricing strategy look like? Your goal should always be to find the sweet spot between maximizing revenue and minimizing customer resistance to the price. When you do it right, your customers shouldn't necessarily pay for it without thinking twice, getting some customer resistance can be a good sign that you are not selling yourself short and pricing too cheap. 🔔 Subscribe and hit the bell to stop missing out on our AMAZING giveaways: https://bit.ly/3n7J6AM 💡 Ready to build your own Micro SaaS business with us from scratch? Register now for early access: https://bit.ly/3NUbN08 Not sure if you should register? 🤨 Dip a toe in the water and check out our Shopify App FREE Crash Course: https://bit.ly/3NVW1la ⚙️ Fancy some free resources? Click here: https://bit.ly/36X42WC 💻 Want to talk shop? Book an online meeting with us: Ruth 👩🏻🦱: https://bit.ly/3hIoI6l Eric 🧔🏻: https://bit.ly/3K3ibPS 🌐 Check out our NEW website here: https://www.rutheric.com/ When you don't take these 2 things into account, you might end on either end of this spectrum: 1. Over-pricing, and getting not customers 2. Under-pricing and making very little revenue out of your customers ---------------------------- The 5 pricing strategies I talk about: ---------------------------- 1. Flat rate pricing The main problem with this model is its lack of optimization and flexibility. When you use flat-rate pricing in your SaaS, you charge too much from your smallest customers and don't charge enough from your largest customers. 2. Usage-based pricing Charge your customers according to their usage- this needs to be based on their usage of the main value they get from your SaaS, otherwise, pricing might feel unproportionate to their needs. 3. Commission-based pricing Take a commission from each transaction your customers make through your SaaS, or from any revenue you generate for them. Mostly fits products that make your customers money. If your product doesn't generate money, it will be relatively difficult to sell as a commission-based product. 4. Feature-based pricing Charge your customers according to the product features they use. In this strategy, you need to make sure you divide your features into plans according to the types of customers you have. The Cheapest plans need to fit the smaller customers by providing the features they truly need, but taking away the features that the larger customers need so they are motivated to upgrade. 5. Freemium Build your pricing strategy so that you capture customers when they can't pay you, and grow with them until they become paying customers. The key here is to not leave it up to the customer to decide when to upgrade- you need to motivate him to upgrade by withholding must-have features or charging him according to his usage.