4 Common Subscription-Based Pricing Models and their Benefits

Subscription-based pricing is a familiar concept that has been in use for centuries, with media and publication houses being the first to adopt it. With the increasing prevalance of technology and software as a service (SaaS) models, there are now a variety of subscription-based pricing models to choose from. In this article, we'll explore four of the most common pricing models and the benefits they offer. By understanding these models, businesses can determine which approach is most suitable for their offerings and revenue goals.

The four subscription-based pricing models are:

• Flat rate
• Per-user
• Consumption-based
• Value-based

Each of these models has its own unique benefits, but ultimately, the choice of model depends on what the business aims to achieve. A flat rate model provides the same pricing to all customers irrespective of usage, while per-user pricing is based on individual users. Consumption-based pricing, on the other hand, charges based on usage, and value-based pricing takes into account the value that the product or service provides to the customer.

By understanding the different pricing models and their benefits, businesses can develop a pricing strategy that is both profitable and customer-centric, making subscription-based pricing a vital tool for businesses as they evolve in today's technology-driven landscape.

The post 4 Common Subscription-Based Pricing Models and their Benefits originally appeared on CRM Software Blog | Dynamics 365.