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How A Recurring Billing System Works with Different Pricing Models

In the SaaS business world, one pricing model cannot be used to maintain the flow of recurring revenue. The pricing models need to be modified and improvised with time. The price and price model that you decide on for your SaaS business depends on various factors including the following:

  • The price that competitors are charging is one of the first things that you need to see when deciding the price for your SaaS product or services.
  • You also need to see what type of product you are offering. Sometimes, it is a taxing task to divide the SaaS product into units and monetize it. So, if there is such an issue, you can consult with the experts of the company that is providing you with the recurring billing system. timebusinesnews
  • You also need to see the results of the pricing model or the plan that you are already using. If the results are not satisfactory then no matter what competitors are doing, you need to adjust the pricing plan.

However, the recurring billing system plays a significant role in the implementation of your pricing model. Let us discuss a few important pricing models that various SaaS businesses are using in the SaaS market and the impact of the recurring billing system on these models.


Many SaaS companies offer freemium. Many experts, these days denounce the practice of offering freemiums. They think SaaS businesses lose the chance of expanding the customer base by offering freemium. However, that is not true in many cases. Freemiums and free trials are important in the SaaS world. Why? Because the SaaS products are abstract and it is unfair to the customer that he is not given the chance to test your product rather he is asked to pay the complete charges to the pricing plans that have been set for the SaaS product. Entrepreneurs and startups need to plan freemium and free trials with diligence. But they can be implemented with the recurring billing solution. You can even plan and implement the freemium with other pricing models. Observe the outcomes of your pricing model with the recurring billing platform that you are using. ventssmagazine

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Usage-based Billing Model

In this billing model, SaaS-based companies charge their customers based on their usage. The customers are usually charged after the usage. For instance, people use mobile data, and they are charged based on their usage. Similarly, people use different internet services, and they are charged as per their usage. The usage-based billing model can be implemented with the best recurring billing platforms. Solely a billing model cannot help you achieve your revenue targets. You need a recurring billing software that can help you implement your billing model.

User-Based Billing Model

Another billing model that SaaS companies implement is the user-based billing model. As it has been mentioned that you need to decide the price depending on your SaaS product or services as well. If your services are such that you think that the customer needs to be charged per person, then your billing model is user-based. And this model can also be implemented with the recurring billing software that you adopt. However, you must not confuse this billing model with the usage-based billing model.

Tiered Billing Model

Again, if your SaaS product is developed in a way that offers varying features, then you can monetize it by dividing these features into tiers. Bill the customer depending on the tier that he is purchasing from you. Also, SaaS businesses try that the customer to move to the next tier which can improve your recurring revenue and the functionality for the customer. In this pricing model, the customer remains satisfied because the product features are divided and monetized in a way that the customer knows he is paying exactly for what he is using.

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Hybrid Billing Model

The hybrid billing model is a mix of different models. It is not a billing plan in itself rather the SaaS company decided on a billing model depending on its needs. Different plans are tried and tested. A mix is prepared that can work the best for the SaaS business. However, in the hybrid billing model, there is a significant margin of making changes with time. As soon as you feel that the billing model is not offering what you expected, you can make changes and implement them with the recurring billing software for small businesses and large enterprises (SMBs). If you are looking for recurring billing software, then you can try SubscriptionFlow. It is one of the best recurring billing platforms that you can try and opt for. You can even contact their experts. They cannot only offer the billing software but also the training so that you can use their billing platform to the fullest so as to implement the pricing plan that you have decided.

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