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Pricing SaaS: Seats, Usage or Outcomes?

How software companies charge shapes how customers adopt, expand and churn. A guide to the main pricing models.

By Priya Raman, Technology & Business Reporter

Updated 1 min read

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Pricing SaaS: Seats, Usage or Outcomes?
Image: Unsplash

Pricing is one of the most powerful levers a software company has, and one of the least revisited. The model you choose sends signals about value and determines how revenue grows with customers.

Per-seat pricing

Simple to understand and forecast, but it can discourage wider adoption inside a customer’s organisation.

Usage-based pricing

Revenue grows naturally with customer success, though it makes forecasting harder for both sides.

Outcome-based pricing

Charging for results aligns incentives closely but requires outcomes that can be measured and attributed fairly.

Key takeaways

  • Per-seat pricing
  • Usage-based pricing
  • Outcome-based pricing

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About the author

Priya RamanTechnology & Business Reporter

Priya reports on how AI, software and cybersecurity are changing the way companies operate and compete.

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