The decision to make on day one of a multi-tenant SaaS
Where you separate customer data shapes the years that follow. Three approaches and the one we chose.
Price is the least discussed feature of a product. The wrong model cannot grow even the right product.
What pricing models exist?
Per-seat pricing is simple and predictable, but can discourage wide adoption. Usage-based pricing grows with value, but makes bills harder to forecast. Tiered plans strike a balance between the two.
How do you pick a value metric?
Tie price to a metric that grows with customer success. In field service software that may be technician count; in an email tool, sending volume. Something the customer already counts in their own work is easier to understand.
Free trial or free plan?
If the product shows value quickly, a time-limited trial is enough. With network effects or long adoption, a free plan can make sense, but include the cost of support.
When should price change?
Price is not a fixed decision. Test on new customers, inform existing customers in advance and watch churn. If nobody ever objects in sales calls, the price may be too low.
