SaaS Pricing Models (The Smart Way to Price Your SaaS Business to drive LTV and Net Retention)
SaaS pricing models |
When I started building my last startup, we really had to figure out how we wanted to price our SaaS product.
Did we want to do it by a per seat basis? Per month or per year? $29 or $49? There were endless options.
So, I asked the experts and started reading the best books on SaaS pricing strategies. I still made missteps over the course of building that startup, but I really learned what worked and what didn't in terms of having a sound b2b pricing strategy.
From this personal experience and my decade-long stint in the SaaS industry, I came to the conclusion that there are four key principles every SaaS business should think about when pricing their product.
In this video, I give you rundown of what I've learned about pricing SaaS and the four principles you absolutely must know when it comes to pricing your SaaS product the smart way.
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VIDEOS MENTIONED
Market Segmentation Examples for SaaS —
Unstoppable Sales Funnel —
How to Build a Startup While Working Full Time —
How I Would Start a SaaS Business Today —
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PLAYLISTS TO WATCH NEXT
1) SCALE AND GROW YOUR SAAS STARTUP WITH AN UNSTOPPABLE GTM
Playlist: Unstoppable Sales Funnel –
Playlist: Startup Growth Hacking –
Playlist: SaaS Startup Tips –
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Playlist: Startup Planning & Strategy –
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3) QUITTING YOUR JOB AND STARTING A SAAS BUSINESS
🎥 Playlist: How to Quit Your Job & Start a SaaS Business –
🎥 Playlist: Best Jobs in Your 20s & How to Navigate a Career Change in Your 30s –
4) RUN YOUR LIFE LIKE A PRO ATHLETE TO MANAGE FOR BURNOUT AND DRIVE PEAK PERFORMANCE AS A STARTUP FOUNDER
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🎥 Playlist: Burnout Prevention & Recovery –
🎥 Playlist: How to Deal With Sunday Scaries –
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I dont mean to be so off topic but does anyone know a method to get back into an instagram account??
I was dumb lost my account password. I would love any help you can give me
TK, you have no idea how helpful this is… Thank you 🙏
Love it! Keep me posted on what you decide for your pricing model. Also. You should definitely build an Unstoppable Funnel.
@TK Kader I will keep you posted! I started to work on an Unstoppable Funnel (established ICP, Macro trends, working on broadway show etc.) while the MVP is being built. I can sincerely say you’ve shaped my whole approach and strategy. For the rest, “Principles” and “What you do is who you are” are my inspirations.
Hey TK, thank you for talking about this topic. I’m creating a SaaS app to help Python Developers launch applications at conveyor.dev – this video was super helpful in evaluating my options for pricing. Thank you!
So glad you found value! Love what you’re working on. What other topics would you want me to cover in future episodes?
Yes!
Hi how can I get in touch with you?
Hey Arnold, details about working with me are here 👇
Tkkader.com/gtm
Hello TK, I just started watching your videos and they are very informative. I own a web design agency, planning to convert as a SaaS based solution. Can you pls advise?
Hey Rajesh! Welcome to the community! I highly recommend you check out my SaaS Training: tkkader.com/saas-build-scale-training.
TK, in this pricing strategy, the cheapest is USD$30 with free trial? Ps: I need this t-shirt you are wearing. 😂
I like to start with a minimum of $30/month especially in b2b. We sell our T-shirt’s here! https://store.getunstoppable.com/
Hi TK, what about in cases where you’re building a product that does not exist? The only think I can think of is calculating how much time the customers are saving by using my product. (I built a tool that converts a single image into a playable world for a game engine)
Time saved is an okay one. Perhaps a better one would be the cost of hiring someone to do it and the labor cost replacement of that?
@TK Kader Yeah that’s better. Thank you I love your channel!
Glad to have you here!
Tk I love your content, but it’s far too long imo, wish there’s a summary or short version of each video
I appreciate the feedback! We will definitely look into it!
Very valuable , thanks man
Hi TK, it was nice description for a startup. We have a health care saas business model startup, we are working on the unit service pricing but quite not able to figure out.
What would you suggest in this case?
SaaS like Google sheet, adobe products, zoho products – they build products which requires less than 10% customizations
Saas products like Shopify may require 50% customisation as per client needs.
So it’s technically saas price + customisation price.
What’s the best strategy for pricing in the second case
Many angels in human form on this YouTube platform. God bless you man!
🙏
This channel is an absolute gem.
🙏🙏
Another treasure by TK
It was great video but one question: If there is a 3 tier pricing strategy laid out on the website, where and how to communicate the enforced mimimum platform fee to customer? @TK Kader, thanks in advance
No, that’s more for the “Talk to Sales” for the Enterprise pricing tier.
@TK Kader like the 3rd tier of the pricing plan.Thanks!
I am mesmerized, researching on Saas for my B2B business and I am speechless. Thanks for the mentorship😍
Glad you find this helpful!
I love your energy! Thanks for sharing this, and you should consider teaching at a business school 🙂
I don’t know if I’m cool enough to do that 😂.
good vid
glad you enjoyed it!
amazing as always but TK please please talk slower. our english are not good enough😭😭😭😭
Now that’s a hard ask!
@TK Kader i think its better i adapet myself to you .