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  • Writer's pictureUlrik Lehrskov-Schmidt

SaaS Pricing Architecture - The 9 Building Blocks of SaaS Pricing

Designing a SaaS Pricing Model you have 3 core revenue components : Pricing Metrics, Flat Fees and Transactional non-ARR revenue. Full Video below.

There are only 3 high-level components to your SaaS pricing model:

  1. Pricing Metrics

  2. Flat Fees

  3. Transactional non-ARR revenue

Each of these can be further broken down into 3 sub-components each - e.g. Pricing Metrics can be broken down into Usage-Based Metrics, License-Based Metrics and Credit Systems.

Each have In the video below I walk through all 9 sub-components, explain what they are and break down the various pros and cons in terms of cash-flow, sales psychology, risk mitigation and so on.


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