September 21, 2018

SaaS pricing page

I talked to a couple of SaaS founders and was able to learn a lot from their trial and error while setting up the perfect pricing page. Here are the 6 most common answers I got.

Basics:

  • The ideal number of plans is 3.

  • Features comparison between plan should be easy to understand.

To increase signups:

  • Don't require a credit card to signup.

  • Offer a free trial

To increase trust:

  • Offer annual plan, so you look like you are in for the long run.

  • Offer a money back guarantee. Anyway, you want to reimburse clients who are not satisfied, so just put that up front.

What's your experience setting up the perfect pricing page?


  1. 3

    I think a lot of what you wrote here could be good starting points to iterate on.

    I don't believe a "perfect pricing page" exists for any business, but that doesn't mean you can't aim for it. (I just wrote about this dilemma here)

    A few more thoughts...

    The ideal number of plans is 3.

    It really depends on your customer segments. Again, could be a good place to start though!

    Features comparison between plan should be easy to understand.

    Yep! You can always A/B test the messaging of the features, too.

    Don't require a credit card to signup.
    Offer a free trial

    Both of these will decrease the friction to acquiring new users. However, make sure you also consider the time and resources they're going to require as far as support.

    Freemium also might be a good option. What's your product?

    Offer annual plan, so you look like you are in for the long run.

    Just make sure you don't just look like you are in it for the long run. For example, if this is a 3-month experiment and you get paid for a yearly plan, you want to make sure you have a plan.

    Offer a money back guarantee. Anyway, you want to reimburse clients who are not satisfied, so just put that up front.

    This could be that plan :)

    1. 2

      Thanks for the valuable feedback! I think Cheddar is a great product btw ;-)

      My [yet to be released] product offers SaaS boilerplates features as a snippet, so you can add billing and subscription management with just a single line of JS code. https://unleak.io

      1. 2

        Thanks for sharing and the compliment!

        Seeing as Unleak seems to be a relatively sticky product (as with anything related to payments!) once implemented, I'd be curious to hear how the free trial acquisition strategy goes over freemium. I'd imagine you'll have fewer signups support requests than if you were to do freemium, but I'm worried about the opportunity cost. Maybe freemium (ex. free up to 20 paying customers or something) would lead to more signups and support requests but also many more paying customers. The only way to find out is to try both, of course. :)

        My [yet to be released] product offers SaaS boilerplates features as a snippet, so you can add billing and subscription management with just a single line of JS code. https://unleak.io

        Just some more feedback here. If you're emphasizing the billing and subscription management features, have you considered leading with those (ex. "Manager") in the "startup" plan instead of only giving access to the "Greeter" in the starter plan?

        1. 1

          Thanks again for the feedback! Plans and pricing are yet to be properly defined, and I would gladly take your feedback on what I have in mind.

          First of all, as in Stripe, you have a "live" and "test" mode. The free trial will actually be until you use the "live" mode for the first time. Or something like this. I want people to sign up right now even if they are not ready to go live with their product and make sure they have enough time to develop their solution before being charged for the first time. I just hate to integrate with a product I have to pay for while I am in development mode. So everything in "test" mode will be free to use, and the "live" mode will require a subscription.

          Second, I plan on giving away the greeter on a free plan. This is just very basic stuff to get accustomed to my API. The starter would then include both the enroller and manager and a third tier would include the paywall.

          I intend to keep a free plan for low development cost things (like the greeter). I want an intermediary plan where startups can actually hit off and start making money at a decent price per month. And finally, I want to offer options for those who are ready to take it to the next level in their customer success journey to be able to do so with many more widgets to come.

          Any thoughts?

          Thanks!

          1. 1

            First of all, as in Stripe, you have a "live" and "test" mode. The free trial will actually be until you use the "live" mode for the first time. Or something like this. I want people to sign up right now even if they are not ready to go live with their product and make sure they have enough time to develop their solution before being charged for the first time. I just hate to integrate with a product I have to pay for while I am in development mode. So everything in "test" mode will be free to use, and the "live" mode will require a subscription.

            I completely get it, that's exactly what we do too. :)

            Second, I plan on giving away the greeter on a free plan. This is just very basic stuff to get accustomed to my API. The starter would then include both the enroller and manager and a third tier would include the paywall.
            I intend to keep a free plan for low development cost things (like the greeter). I want an intermediary plan where startups can actually hit off and start making money at a decent price per month. And finally, I want to offer options for those who are ready to take it to the next level in their customer success journey to be able to do so with many more widgets to come.

            I think this makes more sense to me than what's currently on your website (greeter is paid! No other comments besides that for right now. The only thing to do is put it in front of an audience and see what they do. On that note, definitely install HotJar if you haven't.

            By the way, I encourage you to check out the SaaS Pricing group I created on Facebook. We're just getting started and only at 17 members right now, but I'm sure the group could learn from you and help you out in the future.

            1. 2

              Thanks, applied to join the group!

  2. 1

    To increase signups:
    Don't require a credit card to signup.
    Offer a free trial

    I'd think hard about these two and wouldn't consider them universal best practices. Indeed, both will help "increase signups", but you should consider whether that's truly your goal (for many businesses the goal is to increase revenue and decrease chrun, both of which aren't necessarily directly correlated to increased sign-ups).

    Do some reading on this -- at least a few SaaS companies experimented with requiring a CC at trial sign-up and have had improved outcomes because of it. Fewer "tire kicker" users, better retention, etc.

    But this really depends on your business, so it's something you need to test. YMMV!

  3. 1

    You didn't touch pricing itself but it can be a serious problem for users. Many, many businesses aim at bigger players completely ignoring small ones, just to make more money. In this situation the whole point about "perfect" pricing just doesn't make any sense.