The Definitive Guide to SaaS Pricing Structure (with Benchmarks)
Plus: Updates from Figma, Okta, and Mural.
Welcome back to Good Better Best.
One of the biggest challenges for SaaS operators is nailing pricing structure. A big reason why is there's no shared vocabulary for SaaS pricing models, metrics, and packaging elements. It's hard to create a winning strategy if you don't even know how to talk about it.
So we teamed up with Ulrik Lehrskov-Schmidt to break pricing structure down into its atomic units. The 2025 Pricing Metrics Report features clear definitions, industry-wide benchmarks, and real-world examples of how companies are structuring their pricing models.
Below, you’ll find a preview, including definitions and high-level findings, but the full report is jam-packed with examples from top SaaS companies. Don’t miss it.
📰 Pricing News & Updates
Okta launched a new tiered pricing model.
Figma clarified seat types and raised per-seat prices.
Mural added features to each plan.
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Experts agree that the hardest part of any project is getting the pricing structure right. So, we decided to take a deep dive into this challenge.
One of the most surprising insights we uncovered is that there are no standardized definitions for classifying pricing metrics in SaaS. To bring clarity to this space, we teamed up with Ulrik Lehrskov-Schmidt — and broke down pricing structure into it’s atomic units, so its easier to understand and talk about.
Definitions
Pricing Model: An overarching framework that defines how you charge your customers based on what they purchase and how pricing varies. Pricing Models are a combination of pricing modalities and pricing metrics.
Pricing Modality: The method by which you charge customers. In SaaS there are four core modalities:
Flat Fee: Same amount no matter how much customers use now or in the future; fixed price.
License: Gives customers the right to use something; purchased before use.
Usage: Based on your customers consumption; paid after use.
Credit: Hybrid between license and usage. Credits give customers a right to consume or use something at a later stage, but the usage is estimated and paid for upfront.
Pricing Metric: The specific unit of measurement used within a pricing model to calculate the price. It's the "what" you are charging for (e.g., users, data volume, etc).
Within a typical SaaS pricing model, packages are usually built around two main elements: thresholds and features.
Thresholds: Any unit or volume in a given package or plan that is limited. This can come in two distinct types with different dynamics:
Soft: Soft thresholds function as a pricing metric with an included volume already priced in. For example, 5 users included on a basic plan, but +$100/user month for additional users.
Hard: Hard thresholds are enforced and offer no pricing model to increase the volume. For example, 3 active templates in the Basic plan - or you have to upgrade to Pro plan, but with no option to purchase additional 'active templates'. This is often done to force upgrades to more expensive plans or to avoid unfair usage of an aspect of the product.
Features: A distinct functionality, service, or aspect of your solution that your organization can technically deliver to a customer.
Benchmarks
Armed with those definitions, we analyzed the PricingSaaS Index to understand how top companies are using pricing modalities, metrics, and thresholds.
Unsurprisingly, licenses are still the most popular modality in SaaS. While Credits seem to be growing in popularity, they still fall well behind Licenses and Usage as the two primary ways to structure SaaS pricing.
Most companies only have one modality, but the most common combination is License + Usage, which was found across 14% of the index. Hardly any companies are using Licenses, Usage, and Credits together…for now.
Within packages, we found many companies with a License modality are using a lot of thresholds within their packages. This is traditionally referred to as a hybrid model, where a company charges on a license basis, but includes usage limits within plans.
These insights are the tip of the iceberg. In the full report, you will find:
A breakdown of each modality by SaaS category
An example of each modality from a leading SaaS company
A table breaking down modality, metrics, and thresholds to highlight how these elements function together.
🎯 Expert Insight
Why is pricing structure so important?
The core reason is that a well-designed pricing structure enables you to effectively price your diverse customer base and capture value based on their specific needs and willingness to pay.
If you find yourself endlessly debating price points, here’s why you should focus on pricing structure instead:
Pricing Structure Enables Price Discrimination: The ultimate goal of strategic pricing is to charge different customers different amounts based on the value they receive and their capacity to pay. This is achieved through a robust pricing structure that includes product packaging (what you sell and to whom, considering fencing and laddering) and pricing models (how you charge). Without a well-thought-out structure, you are limited to a one-size-fits-all approach, potentially leaving money on the table or losing price-sensitive customers.
Price Points are Less Important if the Structure is Right: If you have a solid product structure and pricing model that aligns with customer needs and value, the specific price points become less critical. The structure does the heavy lifting in ensuring you are pricing the customer effectively, not just the features of your product.
Focusing on Price Points Prematurely Leads to Missed Opportunities: Debating small price differences (like $119 vs. $149) indicates a lack of focus on the more fundamental aspects of your pricing. The real money and strategic advantage lie in designing a structure that allows you to cater to different customer segments and use cases.
Structure Aligns with Customer Value and Jobs to Be Done: A good pricing structure is built around understanding what your customers are trying to achieve ("jobs to be done") and packaging your offerings accordingly. This ensures that customers see a direct correlation between what they are paying for and the value they receive. Price points applied to poorly structured offerings may not resonate with customer needs.
Structure Facilitates Scale and Profitability: By effectively pricing different customer segments through a well-defined structure, you can optimize your revenue generation and achieve sustainable profitability as you scale. A rigid price point strategy may hinder your ability to acquire new customers or expand within existing ones.
In essence, pricing structure provides the framework for how you extract value from your market, while price points are simply the numerical values assigned within that framework. A strong framework is necessary to effectively capture the diverse willingness to pay within your customer base.
Thanks for tuning in and see you next week!
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