We live in a subscription billing revolution. Subscription billing is the new business model that is taking the world by storm. Numerous industries are switching from traditional pay-per-use pricing to a subscription pricing business model. For this trend to occur, there has to be a set of major benefits for organizations. So what are these advantages and how could you benefit?
Over the past few months, we have written articles on seven of the most common pricing strategies for subscription-based businesses. The following summary will make it easier for you to compare the 7 most common recurring billing pricing strategies.
Our final article in this pricing strategy series is on price segmentation. This is where you offer the same product or services but at different (or unique) prices to different types of customers. This pricing strategy has proven to increase overall profit and revenues especially in industries with high fixed cost structures.
The following pricing strategy is called price bundling, product bundling, a compilation, or a package deal. This is when a customer buys two or more products or services together for one price instead of buying items separately for individual prices.
Tiered or volume pricing is a very common pricing model in the SaaS and a subscription-based world. Basically, a company offers different price packages where volume is the key differentiator. What constitutes volume varies of course. Let's take a look at few examples.
The fourth in our pricing strategy series, this post examines base and overage pricing, also referred to as tiered and overage pricing.
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 the history, (before the late 90’s) most companies had one monetization strategy (and it probably wasn’t called that) – the one time transaction. They had a product and people bought it. When it wore out or broke, companies hoped that people would buy another one.
This is the first in a mini-series of articles on Tiered, Volume, and Usage based pricing as part of metered price plans.
Today's guest post comes from Fusebill's chief bean counter, Cathy Smith. Cathy and her team have helped shape Fusebill so that our customers' accountants will be happy. Fusebill was designed by accountants. That’s right, beancounters had input. As a result, Fusebill has features that make our lives easy.
What is the most prevalent software as a product (SaaS) recurring billing price model? For most cases, it's simply the model of charging your users month after month, until they cancel.
Effective and competitive pricing strategy is an important consideration for every subscription business. What are some principles of simplifying subscription pricing?
Your business has a loyal base of subscribers. They pay on a regular basis and your subscription billing seems to go well. If only it would be this easy. What happens when your subscriber's credit card expires or fails?
Companies exploring subscription billing solutions should look beyond their immediate needs to ensure they choose a platform that meets their long-term needs. This guide will walk through the wide range of features required to automate your recurring billing, subscription management and payment process.