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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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Based on our saas pricing book, Price to Scale, one effective approach is to use a modular pricing strategy for high-value features. This method allows you to assign a distinct value to features that provide significant benefits without relying on traditional per-user metrics, thereby preserving the self-service ease of a PLG experience.
Key recommendations from our book include:
• Modular Pricing:
- Rather than bundling these capabilities into a one-size-fits-all model, you can price them as add-ons. For example, if a feature (like a marketing automation tool for customer success) holds value that isn’t correlated with the number of users, you can structure its pricing around the number of customers or another relevant metric.
- This ensures that customers who need the extra value pay for it without imposing a heavier cost structure on everyone.
• Keep the Pricing Model Simple, Measurable, and Scalable:
- A simple model is easy to understand and communicate—even during an elevator pitch.
- It should be measurable, meaning you have a clear way to capture the usage or results of the high-value feature.
- And it must scale: as customers derive more value from the feature, your pricing should naturally capture that additional benefit.
This approach lets you monetize high-value capabilities without complicating or “breaking” the PLG experience. Customers can start with a core product that is accessible and upgrade to add-ons as their needs evolve, aligning pricing directly with the value they receive.
In summary, modular pricing for high-value features—pricing based on a metric that truly reflects the benefit—can monetize incremental value while keeping the PLG user experience intact, ensuring simplicity, measurability, and scalability.