How to Monetise SaaS: Pricing Models, Plans and Freemium

SaaS monetisation is how a subscription service makes money: what exactly the customer pays for, how much and how often. The main models are a flat subscription, tiered plans with different feature sets, per-user pricing, usage-based pricing and freemium (a free basic plan with paid upgrades). In practice most services combine two or three models, and it is worth choosing them before development: the model determines billing, limits, roles and the product architecture.

Why the monetisation model is decided before development

Price is more than a line on the website. If the service charges per user, the product needs seat tracking, invitations and roles. If it charges by volume, it needs counters, limits and overage notifications. If there is a free plan, it needs feature restrictions and a clear path to payment. Adding all of this after launch costs more than building it in from the start.

The monetisation model also determines whether the product pays off at all. We covered how to calculate payback in ROI of a Digital Product.

The main SaaS monetisation models

Flat subscription

One price, all features. For example, 20,000 tenge a month for access to the service.

• Fits: simple products with a homogeneous audience and a single scenario.

• Pros: easy to explain and sell, simple to build.

• Cons: small customers overpay, large ones underpay; there is no way to “grow” inside the product.

Tiered pricing

Several packages, usually three, with different features and limits: “Start”, “Business”, “Pro”.

• Fits: most B2B services with different customer segments.

• Pros: each segment finds its option, and customers can move up a plan as they grow.

• Cons: you need to decide precisely which features go in which plan; too many plans confuse buyers.

Per-user (per-seat) pricing

The price is multiplied by the number of employees using the service. Many CRMs, task trackers and corporate messengers work this way.

• Fits: products for teams, where value grows with the number of users.

• Pros: revenue grows with the customer, and the model is easy for buyers to understand.

• Cons: customers save on seats and share one account; it can be expensive for small teams.

Usage-based pricing

The customer pays for actual volume: number of orders, messages, documents, points of sale, gigabytes.

• Fits: services where volume varies widely between customers — mailings, online cash registers, logistics, APIs.

• Pros: fair for the customer, a low entry barrier, revenue grows with the customer’s business.

• Cons: revenue is harder to forecast; customers find budgeting harder, so you need clear counters and limit warnings.

Freemium

The basic plan is free forever; advanced features or higher limits are paid. Many mass-market video calling, note-taking and collaboration services grew this way.

• Fits: products with a broad audience and a low cost of serving each user.

• Pros: fast growth of the user base and brand awareness.

• Cons: only a small share of users start paying, while everyone needs infrastructure and support. Without a well-designed “ceiling” on the free plan, the model turns into charity.

Free trial

Full access for 7–30 days, then payment. For B2B this often works better than freemium: the customer sees the full value and makes a decision within a clear timeframe.

• Pros: a higher share of paying customers, simpler economics.

• Cons: during the trial the customer has to set up the product and get a result — without good onboarding the trial is wasted.

Hybrid models

In practice models are combined: plans plus a charge for users above the limit; a subscription plus a volume fee; a one-off implementation fee plus a monthly subscription. For B2B services in Kazakhstan, “one-off setup and training, then a subscription” is a popular scheme.

How to choose a model: a short checklist

1. Find your value metric. What are customers actually willing to pay for: number of employees, orders, branches, clients in the database? The price should grow with this metric.

2. Look at your segments. If customers vary greatly in size, you need plans or usage-based pricing, not a single price.

3. Estimate the cost to serve. If each user costs you noticeable money (servers, SMS, support), freemium is risky — a trial is better.

4. Consider how your customers buy. B2B in Kazakhstan often pays by invoice and contract, with closing documents — billing needs to support this.

5. Start simple. For an MVP, 2–3 plans or one subscription with a trial is enough. It’s better to make the model more complex based on data, not in advance.

How to build a pricing table

• Three plans is the sweet spot. The first is for getting started, the second is the main one you’re counting on, the third is for large customers. Highlight the middle plan visually.

• Separate plans by value, not by trifles. Good limiters are the number of users, volume, branches, integrations and priority support. Bad ones are small features without which the product feels crippled.

• Offer annual billing at a discount. It improves cash flow and reduces churn. A common practice is a discount equal to one or two months.

• Show prices in local currency. For the Kazakhstan market, in tenge, with clear card and invoice payment.

• Keep “Enterprise” on request. For large customers with special requirements, it’s easier to discuss the price individually.

Example: plans for an online booking service

A hypothetical example: a SaaS for beauty salons and studios. The figures are illustrative.

• “Start” — 15,000 ₸/month: 1 branch, up to 3 specialists, online booking and reminders.

• “Business” — 35,000 ₸/month: up to 3 branches, up to 15 specialists, analytics, loyalty programme.

• “Network” — 70,000 ₸/month: unlimited branches, integration with the accounting system, priority support.

• A 14-day trial on the “Business” plan; annual billing — two months off.

If 40 customers use the service — 20 on “Start”, 15 on “Business” and 5 on “Network” — monthly recurring revenue (MRR) will be 20 × 15,000 + 15 × 35,000 + 5 × 70,000 = 1,175,000 ₸. Note that the middle plan brings in almost half of the revenue, even though it has fewer customers than “Start”.

What to build into the product for monetisation

• Billing and recurring payments: automatic charges, retries on failed payments, customer notifications.

• Payment for companies: invoices, contracts, closing documents.

• Plans and limits in the code: features enabled by plan, usage counters, clear messages when a limit is reached.

• Plan changes: upgrades and downgrades in the customer account, proration when changing mid-period.

• Trial and onboarding: tips and steps that lead the customer to their first result.

• Analytics: MRR, churn, trial-to-paid conversion, movement between plans.

All of these can be launched in stages: in the first version, a subscription and manual invoices; later, automation. We explained how to structure the first version of a SaaS in What Is SaaS, and about launching an MVP on the MVP development page.

Common SaaS monetisation mistakes

1. A price that’s too low “to get started”. Raising prices for existing customers is harder than starting with a fair price and giving early customers a discount.

2. Too many plans. Five or six options with small differences make choosing harder and reduce sales.

3. Freemium with no path to payment. If the free plan is enough for almost everyone, nobody will pay.

4. Price tied to cost, not value. Customers pay for results — hours saved, new orders — not for your servers.

5. No invoice payment for B2B. Many companies can’t pay by card; without invoices and documents, sales are lost.

6. Prices are never reviewed. The monetisation model is a hypothesis. Test it with data and adjust it at least every six to twelve months.

FAQ

Which model should a new SaaS choose

To start with, 2–3 plans with a trial are usually enough. They are simple to build and explain, and the first months of data will show whether you need per-user or usage-based pricing.

Which is better: freemium or a free trial

Freemium suits mass-market products where each user is cheap to serve. For B2B services with implementation and support, a trial is usually more profitable: the purchase decision comes faster, and free users don’t load the team.

Can you change prices after launch

Yes, and that’s normal. New customers can see the new prices straight away, while existing customers can keep the old ones for a while or be offered a switch with a clear benefit.

How many plans should there be

Most often three, plus a custom offer for large customers. Fewer makes it hard to cover different segments; more makes choosing hard for the customer.

Is annual billing necessary

It’s advisable: it improves cash flow and reduces churn. Annual billing is usually encouraged with a discount equal to one or two months.

Planning your own SaaS and want to build monetisation into the first version? Take a look at our case studies and request a proposal — we’ll help you choose a model, design plans and billing, and launch an MVP. For products that evolve continuously, the Time & Material model works well.