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Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
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In the rapidly evolving landscape of blockchain technology, enterprise solution providers face a unique challenge: how to effectively price and package their offerings to maximize value, drive adoption, and ensure sustainable revenue growth. Unlike conventional SaaS models, blockchain enterprise solutions often involve complex value propositions that can be difficult to translate into clear pricing structures.
This guide walks through a methodical approach to developing a pricing and packaging strategy specifically tailored for blockchain enterprise solutions, helping you articulate value in ways that resonate with enterprise stakeholders and align with the transformative nature of blockchain technology.
Why Traditional SaaS Pricing Models Often Fall Short for Blockchain Solutions
Blockchain enterprise solutions differ fundamentally from traditional SaaS offerings in several ways:
- They often create value through network effects rather than individual user productivity
- Their implementation typically involves significant organizational change
- Value creation frequently occurs at the ecosystem level rather than solely within a single organization
- The technology itself continues to evolve rapidly, creating uncertainty in long-term value assessment
According to Gartner, by 2025, the business value added by blockchain will grow to $176 billion, increasing to $3.1 trillion by 2030. Yet many blockchain solution providers struggle to capture a fair portion of this value creation due to suboptimal pricing strategies.
Phase 1: Value Discovery and Assessment
Identify Value Drivers
Begin by mapping the specific ways your blockchain solution creates value:
Cost Reduction: Does your solution eliminate intermediaries, reduce fraud, streamline reconciliation, or minimize compliance costs?
Risk Mitigation: How does your solution reduce counterparty risk, enhance data integrity, or improve resilience?
Revenue Enablement: Does your solution enable new business models, create new market opportunities, or enhance existing revenue streams?
Strategic Positioning: How does your solution help clients differentiate in their market or prepare for industry transformation?
One enterprise blockchain provider for supply chain found that while clients initially focused on cost reduction (valued at 2-3% of supply chain costs), the strategic value of transparency and provenance created 5-7x more value – a critical insight for their pricing model.
Quantify Value Where Possible
Work with existing customers or conduct pilot implementations to gather concrete metrics:
- Financial impact (both direct and indirect)
- Time savings and operational efficiencies
- Risk reduction metrics
- Competitive advantage indicators
IBM's blockchain engagements in global trade have demonstrated up to 90% reduction in delay due to missing or incorrect documentation, translating to millions in savings for large importers and exporters. This quantifiable value became central to their pricing calculations.
Phase 2: Market and Competitive Analysis
Analyze Competitive Pricing Models
Survey the pricing approaches of both direct blockchain competitors and adjacent solution providers:
- Subscription-based models (per user, per node, per organization)
- Transaction-based pricing
- Value-based pricing tied to outcomes
- Hybrid models with base subscription plus usage components
Research by Deloitte indicates that 60% of enterprise blockchain solutions currently use subscription-based pricing, but there's a clear trend toward hybrid models that better align with value creation.
Assess Price Sensitivity
Conduct structured interviews with prospective clients to understand:
- Budget allocation processes for blockchain initiatives
- Internal ROI thresholds required for approval
- Perception of value relative to alternative solutions
- Preferred pricing models and their alignment with procurement processes
Phase 3: Strategic Pricing Framework Development
Define Your Pricing Metrics
Select metrics that align with how your solution delivers value:
- Network-based metrics: Number of organizations, number of nodes, ecosystem participants
- Volume metrics: Transactions processed, assets tracked, contracts executed
- Value-correlated metrics: Percentage of value transferred, risk mitigated, or efficiency gained
- User or capacity metrics: Authorized users, computational resources, storage requirements
ConsenSys found that for their enterprise Ethereum offerings, a combination of network deployment fees plus transaction volume pricing created the strongest alignment with customer value realization.
Create Tiered Packaging Options
Design 3-5 distinct packages that address different segments:
- Entry-level package: Focused on pilot implementations or specific use cases
- Standard package: Comprehensive functionality for typical enterprise deployment
- Advanced package: Enhanced features, broader deployment, premium support
- Enterprise package: Customized offering for large-scale implementations
R3's Corda platform effectively uses this approach with their Enterprise, Business Network, and Marketplace editions, each with distinct pricing aligned to different implementation scopes.
Phase 4: Pricing Structure Refinement
Develop Specific Pricing Models
Based on your value assessment and packaging, create specific pricing models:
- Subscription model: Annual or multi-year contracts with tiered pricing based on deployment scope
- Transaction-based model: Base platform fee plus variable cost tied to network activity
- Outcome-based model: Pricing partially or wholly tied to value realization
- Hybrid model: Combination of fixed and variable components aligned to both deployment and usage
According to McKinsey, successful blockchain solution providers typically evolve their pricing from pure subscription in early market stages toward more sophisticated hybrid models as their solutions mature.
Test and Validate
Before finalizing your approach:
- Create detailed financial models projecting revenue under different scenarios
- Test pricing concepts with customer advisory boards
- Run pilot programs with select clients using different pricing approaches
- Analyze price-performance data to identify optimal structures
Phase 5: Go-to-Market Strategy and Implementation
Develop Transition Plans
If you're evolving an existing pricing model:
- Create grandfather clauses for existing customers
- Design migration incentives to move customers to new models
- Establish timelines for pricing transitions with clear communication
Create Sales Enablement Materials
Equip your sales team with:
- Value calculators demonstrating ROI under different scenarios
- Competitive comparison guides
- Negotiation frameworks with acceptable discount parameters
- Case studies demonstrating value realization
Phase 6: Continuous Optimization
Implement Metrics and Monitoring
Track key indicators of pricing effectiveness:
- Win/loss rates across different segments
- Discounting frequency and magnitude
- Customer lifetime value under different pricing models
- Expansion revenue among existing customers
Establish Regular Review Cycles
Schedule quarterly pricing reviews to:
- Assess pricing performance against targets
- Identify market shifts or competitive pressures
- Incorporate learnings from sales and implementation teams
- Make incremental adjustments as needed
Conclusion: The Path Forward
Developing an effective pricing and packaging strategy for blockchain enterprise solutions requires a thoughtful balance between capturing fair value and driving adoption. By anchoring your approach in customer value creation, market realities, and the unique characteristics of blockchain technology, you can create a pricing structure that supports sustainable growth while accelerating market adoption.
The most successful blockchain solution providers recognize that pricing strategy is not a one-time exercise but an evolving discipline. As both the technology and market mature, your pricing approach should evolve accordingly, continuously aligning the value you deliver with the price you capture.
For blockchain enterprise solution providers, the reward for getting pricing right extends beyond immediate revenue – it can fundamentally affect market perception, adoption velocity, and ultimately your solution's contribution to the transformative potential of blockchain technology in the enterprise space.