Understanding SaaS Pricing Models Before You Buy
Free, freemium, per-seat, usage-based and custom pricing explained, with questions to ask vendors.
SaaS vendors use several pricing models. Understanding them helps you compare offers fairly.
Free plans
Some products offer a permanently free tier with limits on users, features or usage. Free tiers are useful for evaluation but check what happens when you exceed the limits.
Freemium
A freemium product combines a free tier with paid upgrades. Review which features are reserved for paid plans.
Per-user (per-seat) pricing
The most common B2B model. Costs scale with headcount, so estimate your team size twelve months out.
Usage-based pricing
Charges depend on consumption — contacts, emails sent, API calls or storage. Forecast your expected usage before committing.
Custom or quote-based pricing
Common for enterprise plans. Prepare your requirements in advance so quotes can be compared on equal terms.
Questions to ask before you buy
- Is there a minimum contract length?
- Are prices quoted monthly or billed annually?
- Which features require add-ons?
- What does onboarding or support cost?
Always confirm current pricing on the vendor's official website before purchasing.