SaaS Pricing Models And Strategies

Choosing the right pricing strategy for your Software as a Service (SaaS) business is one of the most critical decisions you’ll make. Your pricing model not only affects your revenue but also impacts your customer acquisition, retention, and overall brand positioning. In this guide, we’ll explore the most effective SaaS pricing models, highlight beginner-friendly strategies, and introduce useful tools like SE Ranking and Elementor to streamline the process.

Understanding the SaaS Business Model with SE Ranking and Elementor

The saas business model revolves around delivering software via the internet. Instead of purchasing software outright, customers subscribe to use it, usually through a monthly or annual saas subscription. This model has become the standard across modern digital services due to its flexibility, scalability, and ability to support continuous development.

Popular SaaS platforms, like SE Ranking for SEO and Elementor for website design, operate under this model. These tools serve as prime examples of how businesses can build recurring revenue streams while delivering real, measurable value to customers.

This model is also attractive to developers and startups because it allows for iterative development. Feedback loops are faster, customer engagement is more dynamic, and companies can consistently roll out improvements without requiring new purchases.

Image Suggestion: Place a diagram comparing traditional software vs SaaS business models here.

Core SaaS Pricing Models Explained

Subscription-Based Pricing with SE Ranking

One of the most common pricing models in the SaaS world is subscription-based pricing. This approach charges users a recurring fee, typically monthly or annually, in exchange for access to the software. It’s the backbone of most SaaS offerings.

SE Ranking, for example, offers monthly and annual plans suited for freelancers, digital marketers, and enterprises. This predictability benefits both providers (through recurring revenue) and users (who avoid large upfront costs).

This pricing model is also excellent for simplifying budgeting. Customers know exactly what they’re paying and when, making it easier to include your software in their operational expenses.

Pros of Subscription-Based Pricing:

• Predictable monthly revenue
• Lower barrier to entry
• Easy upselling and cross-selling opportunities
• Facilitates long-term relationships with customers

Best for:

• SEO tools like SE Ranking
• Email marketing platforms
• Learning management systems
• Social media management tools

Usage-Based Pricing: Pay Only for What You Use

Also called pay-as-you-go, usage-based pricing ties cost directly to how much the customer uses the product. Examples include cloud storage services that charge per GB, or email APIs that charge per email sent.

This pricing model is ideal for software on demand services and can attract startups and budget-conscious users who only want to pay for actual usage.

Additionally, it encourages efficient behavior. Users are more likely to understand their consumption patterns and stay within usage limits. Companies can also offer thresholds or usage alerts to prevent surprise billing.

Pros:

• High appeal to startups and SMBs
• No fixed costs for low-usage periods
• Aligns with customer success

Cons:

• Harder to forecast revenue
• Risk of bill shock if usage spikes
• Complex backend metering system required

Freemium Model: Build Trust Before Conversion

Freemium gives users free access to basic features, with optional upgrades to unlock advanced capabilities. It’s a powerful way to reduce friction and build a loyal user base.

Elementor offers a freemium plan allowing users to design websites using drag-and-drop tools. More complex functionalities, such as theme building and dynamic content, are available with a Pro subscription.

Freemium also fosters community growth. As users explore your product risk-free, they may share it with colleagues or friends, leading to organic promotion. Ensure your free version delivers meaningful value to hook users early.

Why It Works:

• Users experience value upfront
• Encourages viral growth through sharing
• Increases trial-to-paid conversion rates over time

Image Suggestion: Show a side-by-side comparison of Elementor Free vs Elementor Pro features.

Per-User Pricing for Scaling Businesses

This straightforward model charges customers based on the number of active users. It is particularly effective for b2b saas sales platforms, where each team member needs individual access.

For example, a CRM tool may charge $20/month per user. As the client’s team grows, so does your revenue. However, this model must include strong user permission and team management tools.

Many B2B platforms also offer admin dashboards to help business owners manage seats and view usage insights, which adds additional value to justify the per-user cost.

Benefits:

• Simple and transparent
• Scales with client growth
• Encourages collaboration

Drawbacks:

• May discourage adoption within teams
• Some companies game the system by sharing logins

Per-Feature Pricing: Customization is King

Instead of bundling features into plans, this model allows customers to pick and choose what they need, creating a custom plan. It’s especially useful for saas developers building niche solutions for enterprise users.

Let’s say a security SaaS company offers core monitoring features, but advanced compliance or reporting tools are paid add-ons. This lets businesses only pay for what they truly need.

It’s also great for serving diverse verticals. A marketing agency may want different tools than a manufacturing firm, and feature-based pricing accommodates this flexibility.

Best for:

• Niche enterprise tools
• Compliance-heavy industries
• Technical platforms with modular components

Tiered Pricing: Most Flexible for Users

Tiered pricing offers a balanced structure—bundled plans that scale in price and features. Most SaaS providers adopt this to capture a wide audience.

SE Ranking uses a tiered pricing model with Essential, Pro, and Business plans, offering increasing limits on keyword tracking, user accounts, and competitive research tools.

Elementor also segments its plans by the number of website activations and access to premium design kits. This helps customers grow into your product without outgrowing it too quickly.

Image Suggestion: Show SE Ranking’s pricing tiers in a clean comparison chart.

Advanced SaaS Pricing Strategies

Value-Based Pricing with SE Ranking

Set your price based on how much value the product delivers. If your software saves a client 10 hours per week, or increases their revenue by 20%, you can price accordingly.

SE Ranking helps quantify this value by offering reports on keyword rankings, backlink tracking, and traffic forecasts—tools agencies can use to justify their service fees.

This strategy often leads to higher customer satisfaction, as the pricing aligns closely with the benefits users receive. It’s especially powerful in competitive markets where differentiation matters.

Competitive Pricing: Stand Out with Value

This strategy involves researching direct competitors and positioning your product accordingly. If your product offers more or better features, consider pricing slightly higher to signal superior value.

Elementor is priced higher than some free page builders, but its extensive integrations and ease of use justify the cost. This transparency encourages long-term users.

Competitive pricing doesn’t mean undercutting. It’s about aligning with the market while showcasing your strengths.

Psychological Pricing Techniques

Human behavior can influence pricing decisions. For example:

• Use $29.99 instead of $30 (price ending effect)
• Highlight the “Most Popular” plan
• Use urgency tactics like limited-time discounts

Even color choices and button placements can impact perception. Combine psychology with real value to boost performance.

Annual Plans with Discounts

Encourage long-term commitment by offering discounts for annual plans. This improves cash flow and reduces churn.

Most saas subscription models provide at least 10-20% off annual plans versus monthly billing. Combine this with onboarding support to increase conversion.

Highlight savings directly on the pricing page, and add trust signals like money-back guarantees to reduce friction.

Tools to Support Your Pricing Workflow

SE Ranking for Competitive Research

Use SE Ranking to:

• Discover what pricing language competitors use
• Analyze keyword intent around pricing pages
• Optimize content for pricing-related queries

It’s more than SEO—it’s a growth enabler that informs product positioning.

Elementor for Pricing Page Design

Your pricing page must be clear, convincing, and easy to scan. Elementor provides visual widgets like:

• Toggle switches for monthly vs annual plans
• Icons and color badges for highlighting best value
• Testimonial sliders and trust badges

A/B test different layouts to find what resonates most. Keep load times fast and ensure responsiveness on mobile.

Avoid These Pricing Mistakes

• Setting prices based on gut feeling
• Ignoring customer feedback
• Offering too many or too few options
• Hiding fees or limiting transparency
• Sticking with legacy pricing too long

Use tools like Elementor to iterate design and SE Ranking to evaluate SEO visibility and traffic impact.

Final Thoughts: Align Pricing with Customer Value

Pricing is more than numbers. It’s a reflection of how well you understand your audience, product value, and growth goals. Start with proven models—subscription, freemium, or tiered—and adjust based on usage patterns and customer feedback.

Leverage tools like SE Ranking for market insight and Elementor to visually test and present your plans. Whether you’re building a new saas business model, entering the world of b2b saas sales, or improving your saas subscription offering, thoughtful pricing is your best long-term asset.

In the fast-moving landscape of software on demand, make your pricing as smart as your product.
Explore what Owltek Solutions has to say about the future of SaaS and how it can transform your business!