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What is Tiers + per-Seat + Transaction-Based Pricing?

This pricing model combines a recurring fee for a specific pricing tier with an additional per-Seat, and a transaction-based fee. Pricing Tiers are different packages your customers can choose from that contain a certain set of features, typically a set of three packages like Standard, Gold, and Platinum. Instead of offering just one pricing plan, you segment the pricing of your product into different packages. This allows customers to choose the option that best accommodates their needs. The “Seat” in per Seat Pricing refers to the seat of someone sitting in front of your software using it. Transaction-based Pricing charges a fee that is equal to a share of the transaction value processed by your product. A typical example for this pricing model are payment processing fees. Combining these models allows you to monetize all of those three different factors that provide value to your customers.

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Why this model?

You are targeting different customer profiles, so it’s a great idea to have different pricing tiers that are targeted toward these different customer segments. Having a base fee for each tier and adding a per Seat and transaction-based fee on top of that allows you to charge for the base value of your product as well as for the value that increases with more seats and transaction volume. For the right SaaS, this model takes the best aspects of multiple models and combines them to make a powerful revenue generator. By identifying multiple places where users are getting incremental value – in both the volume of transactions and the number of users – as well as the sets of features that should be available at each base price, you’re sure to offer customers a fair price (they pay for what they use) while recouping otherwise missed revenue opportunities.