You've found the perfect tool. You love the features. But then you look at the pricing page and see a confusing mess of tiers, add-ons, and user limits. Let's decode SaaS pricing.
1. Per-User Pricing
This is the most common model (e.g., Salesforce, Slack). You pay a fixed amount for every person who logs in.
Pros:
- Easy to understand.
- Predictable for small teams with stable headcount.
Cons:
- Punishes growth (your bill doubles if your team doubles).
- Discourages adoption (managers hesitate to add users to save money).
2. Usage-Based Pricing
Common in infrastructure tools (e.g., AWS, Twilio, Stripe). You pay for what you use—gigabytes stored, emails sent, API calls made.
Pros:
- Fair: value aligns with cost.
- Low barrier to entry.
3. Flat-Rate Pricing
You pay one monthly fee for unlimited users (e.g., Basecamp). This is rare but beloved by growing companies.
Which is Best for You?
If you are a startup, flat-rate or usage-based is usually friendlier. If you are an enterprise, expect per-user pricing, but negotiate for volume discounts.
