Recently we started a series of posts on different monetization or pricing strategies. The first in the series described the Freemium+Upsell model, where a business has a free-forever version of their product or service, but also offers a more feature-rich version at a cost.
In this post, we’ll turn our attention to the multiple editions strategy.
This approach is very popular, especially for, but not exclusively to, SaaS services.
Basically, in this model, you would create different packages for different people, and let them choose the one that is right for them.
The price of the different packages offered can be based on many factors, usually dictated by the type of service the business offering the multiple editions is selling.
For example, in this image showing multiple editions, you can see the price you pay depends on the number of users you have.
Also popular is to offer various editions based on the number or type of product features. To access 'premium' features, customers would have to choose a package with a higher price tag.
In this example, you can only access all of the features of the service if you choose the gold listing package which costs the most.
Depending on your needs, the premium features may not have any value to you, so you're not forced to pay for features you won't use.Whether or not the multiple editions price strategy is right for your business really depends on what your business offers.
Traditionally, this strategy works best when you are offering a service like one of the three examples above, as opposed to a physical product. That said; there are of course exceptions.
For example, if you had a weekly or monthly vegetable box delivery service, you could use the multiple editions strategy based on a number of vegetables in the box, or type of vegetables, etc.
How your business processes payments could also be a factor. If you’re not set up do easily handle recurring billing, you could be getting yourself into an accounting and billing operations nightmare.
Are you interested exploring how Fusebill can simplify your subscription billing?