SaaS Pricing Models

If only there was a simple pricing strategy for SaaS (Software as a Service)

Take a look at what one could visualize as the future of SaaS. With projections beyond 2020 in the multi-hundreds of billions in USD for for Software as a Service providers, the space is no small chicken.

How could SaaS providers capture market share and enable innovation in their software offerings? Could we suggest ... by the streaming kind of monetization?


SaaS Companies

There could be about as many SaaS providers out there as there are in varieties or flavors of software programs.

Currently there are many like Marketing Companies, Gamification Services, Business Analytics, Travel Management software service, Time Tracking software service, Security Information and Event Management, Project Management software services, Property Management software services – (like vacancy posting, online rent collection, utility billing, resident screening {eviction+Criminal data}, tenant liability insurance), Website Optimizers – testing 1,000 to Millions of visitors to your site.

And the list could go on and on .....

But what excites me is the potential future of streaming payments and how these companies in SaaS could change their Pricing Models

SaaS Pricing Models

There are many flavors and varieties of pricing for SaaS that exist:

**One-time setup fee + monthly fees



/team size/month – (small 5 team members; medium 15 team members; large 30 team members
for example)

/real estate unit/month

/projects/month – (with file storage in varying sizes)

Freemium models to Premium /month or /year models – (ex: supply free services with value added premium features at a monthly rate)

I Propose a Streaming Model

If SaaS companies were to have a standardized “streaming payment” pricing model, these companies could focus on what is important and stop trying to come up with a pricing model to lure people into contract. They could focus on End User experience and software projects that create ample value.

What most don't seem to think about, is this is a perfect feedback mechanism (ie: streaming payments) because you would be able to gain visibility into how much your SaaS product is actually being used. This insight can help identify if you are succeeding in real time and potentially your future software developments. This really can be a pulse check on your business plan and product.

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