What do you all think about revenue based pricing?

Interesting.

The gold standard for pricing is charging customers according to their ability to pay... and revenue is a good proxy for ability to pay. So that’s perfect.

Except... how do you know your customers’ revenue? If you’re Stripe, for example, your customers revenue passes through your platform, and you can charge a percentage of that, and, hey presto, you have revenue-based pricing.

But if you’re not Stripe, you probably don’t know your customers’ revenue, so it’s better to charge according to something you do know. For example, Slack knows how many people in your organization are using Slack, so they charge by number of users. Which also, incidentally, is a good proxy for ability to pay.

Bottom line: charge according to what’s easily determinable, as well as being a good proxy for ability to pay.

It can be useful for clients who are just starting out because they have the peace of mind that they are not paying anything until they make money (for $0 plans with high percentage fee of revenue). Good for clients but could be bad for you as a business because you may end up supporting quite a few clients who may never make any revenue. So you have to consider that depending on your size.

If you don't have the capacity to support a large number of customers for free, then offering a $0 plan is probably not a good idea in my opinion even if it has a higher percentage of revenue sharing because a lot of clients may never make anything. I always prefer having a minimum fixed amount per month regardless of anything else.

Isn't Chargebee essentially value-based pricing?

As it's billing/invoices/subscription management software the best proxy to value received is either revenue or customers?

Interesting. Thanks for introducing me to Chargebee. I rather like this model for starting out businesses. Not sure how i would down the line, but Chargebee seems to offer a good amount of useful things.

I use http://simplegoods.co/ for hosting/selling my low poly 3d asset pack ( https://household-poly.landen.co/ ) because it has revenue based pricing. It's hard for me to know how much I will sell and I dont mind paying a little higher percent to not have to worry about larger fees without revenue.

I say go for it!