An Experiment in Usage-Based Pricing
by Andrei GasparPricing a SaaS product is surprisingly tricky.
I've spent a lot of time researching pricing models, creating pricing tiers, and calculating margins. When it comes to boardme it somehow always feels off. I couldn't quite get it to feel right.
So, I had to ask myself what is the pricing model that I like the most? What comes naturally to me?
Once I formed that question, the answer was obvious: I like to pay for what I'm using. And, I don't like paying if I'm not using up the resources I've paid for.
That's how boardme's new pricing model was born.
I've started an experiment in usage-based pricing. I'll get back with data on how this decision influenced adoption and user behavior.
Cheers
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Interesting experiment.
First thing that comes to mind is that this might become a problem for businesses who need to get expenses explicitly signed off. At $0.012 per user, I have no idea what I'll be charged next month – as my users vary.
Businesses generally like some certainty for the purposes of forecasting and cash flow. So one to bear in mind!
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Thanks for the heads up! I think it does level out after a certain time so forecasting could be based on that, or if they would like something set in stone there could be a case made for the enterprise tier which offers a dedicated environment and a separate license.
Let's see though! :)
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