.png)
Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
In today's software development landscape, feature flags have become essential tools for managing feature releases, conducting experiments, and mitigating risks. However, as your organization scales its feature flagging strategy, understanding the pricing models of feature flag services becomes crucial for budget planning and cost optimization.
The two primary pricing dimensions in the feature flag market are flag-based pricing and user-based pricing. Each model has significant implications for your development practices and budget. Let's explore both approaches to help you make an informed decision for your organization.
Flag-Based Pricing: Pay Per Flag
Flag-based pricing is exactly what it sounds like – you pay based on the number of feature flags you create and maintain within the system.
How Flag-Based Pricing Works
With this model, providers typically set tiers or limits on the number of flags you can create. For example:
- Basic tier: Up to 50 feature flags
- Business tier: Up to 200 feature flags
- Enterprise tier: Unlimited feature flags
Some providers might charge a flat rate per flag after exceeding a certain threshold, while others increase the overall subscription cost as you move up tiers.
Advantages of Flag-Based Pricing
Predictable costs for small teams: If you have a modest number of applications with limited feature flag usage, this model provides cost certainty.
Encourages flag cleanup: When each flag costs money, teams are incentivized to remove deprecated flags, maintaining better system hygiene.
User scaling freedom: You can add unlimited users to your feature flag system without worrying about increased costs.
Disadvantages of Flag-Based Pricing
Discourages experimentation: Teams may hesitate to create temporary flags for experiments if each one adds to the bill.
Penalizes sophisticated implementations: Organizations with mature feature flag strategies that rely on numerous flags for granular control face higher costs.
Potential technical debt creation: To avoid creating new flags, developers might repurpose existing flags, leading to confusing implementations.
User-Based Pricing: Pay Per Seat or End User
User-based pricing models charge based on either the number of developers/administrators using the system or the end users affected by your feature flags.
How User-Based Pricing Works
User-based pricing typically follows one of two approaches:
Seat-based pricing: Charges based on the number of developers, product managers, or other staff who have access to create and manage flags.
End user-based pricing: Charges based on Monthly Active Users (MAUs) whose experiences are affected by feature flags.
Advantages of User-Based Pricing
Flag experimentation freedom: Create as many flags as needed without worrying about additional costs.
Aligns with value received: As your product grows in users, the value derived from feature flags typically increases proportionally.
Encourages broad adoption: All developers can use feature flags extensively without budget concerns.
Disadvantages of User-Based Pricing
Unpredictable costs: User growth can lead to significant price increases, especially with end user-based pricing.
Seat management overhead: With seat-based pricing, teams must carefully manage access rights and may resort to sharing accounts.
Potential for overspending: Large consumer applications with millions of users may face excessive costs with end user-based pricing.
Hybrid Pricing Models: The Best of Both Worlds?
Some feature flag services offer hybrid pricing models that combine elements of both approaches. These typically include:
- Base pricing determined by seat count
- Additional costs or limits based on flag count
- Volume discounts for large-scale implementations
According to a 2022 report by DevOps Research and Assessment (DORA), organizations with mature feature flag practices create an average of 7-15 flags per service or application component. For larger enterprises with hundreds of microservices, this can quickly add up to thousands of flags, making flag-based pricing potentially prohibitive.
How to Choose the Right Pricing Model for Your Organization
When evaluating feature flag service pricing, consider:
Development team size: Smaller teams might benefit from flag-based pricing, while larger teams may prefer user-based models.
Feature flag strategy maturity: Advanced implementations with numerous flags fare better with user-based pricing.
End user base size: Consumer applications with millions of users should carefully evaluate end user-based pricing.
Expected growth trajectory: Consider not just your current needs but where you'll be in 12-24 months.
Flag usage patterns: If you create many temporary flags for A/B testing, flag-based pricing could become expensive.
Real-World Cost Comparison
Let's examine a hypothetical scenario for a mid-sized SaaS company:
- 40 developers
- 100,000 end users
- 250 active feature flags
- 100 new flags created per month for experiments (most temporary)
Under flag-based pricing at $1 per flag per month, the company would pay approximately $350/month ($250 for permanent flags + average of $100 for temporary flags).
Under seat-based pricing at $20 per developer per month, the cost would be $800/month.
Under end user-based pricing at $0.01 per MAU, the cost would be $1,000/month.
As the company scales to 500,000 users and 60 developers, the economics shift dramatically:
- Flag-based: $450/month (assuming 350 permanent flags + 100 temporary)
- Seat-based: $1,200/month
- End user-based: $5,000/month
Conclusion: Match Your Pricing to Your Usage Patterns
The ideal feature flag service pricing model depends entirely on your organization's specific needs and growth patterns. Flag-based pricing works well for smaller teams with limited flag usage, while user-based models benefit organizations with extensive feature flagging practices.
Before committing to any feature flag service, consider:
- Running usage projections based on your growth plans
- Requesting custom pricing for your specific needs
- Evaluating whether the provider offers flexibility to change pricing models as you scale
Remember that the right feature flag service isn't just about pricing—it's about finding a solution that supports your development workflow, integration needs, and business objectives while providing predictable costs as you grow.