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The Complete Guide to SaaS Pricing Strategy

Tom Tunguz

Most startups play defense when discussing pricing with customers. They use pricing as an offensive tool to reinforce their product’s value and underscore the company’s core marketing message. For many founding teams, pricing is one of the most difficult and complex decisions for the business.

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How SaaStr Fund-Backed RevenueCat Went from a $1.5M Round at $7M Valuation in 2018 to $500M+ Today

SaaStr

When SaaStr Fund made the first investment in RevenueCat back in 2018, nobody could have predicted that this “simple API for managing in-app subscriptions” would become the infrastructure powering 33% of all mobile subscription apps and reach a $500M valuation in 2025. No one else was even building anything like this.

Payments 274
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Where AI Really Matters in Vertical SaaS With CEOs of Owner, Alloy Automation, and DoNotPay

SaaStr

Her company specializes in API integration platforms that enable SaaS companies to launch integrations faster and automate complex business processes. Under her leadership, Alloy Automation has pioneered the use of AI to streamline API integration and documentation processes.

AI 217
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The $939B Question: Is AI Eating SaaS or Feeding It?

SaaStr

This isn’t just about productivity — it’s about economic disruption : The Agent Economics: Traditional SaaS: $3,500 per employee annually across organizations AI Agents: Can replace entire job functions for <$100/month The math may be devastating for high priced seat-based pricing models 3.

AI Search 283
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Usage Based Pricing: 3 Questions to Ask Before Leaping

Tom Tunguz

Is charging by consumption (usage-based pricing) a superior model for a business? When we say UBP, we mean charging customers by how much they use, rather than a constant amount of seats per month or API calls per month. Infrastructure companies sell API calls, licenses per core or host, SMSs, bandwidth, storage by the GB.

Pricing 269
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Pretty Much Every App With an Enterprise Edition Uses “Contact Me” Pricing

SaaStr

With the rise of “Product Led Growth” as such a key concept in SaaS, it brings up an age-old question in business software: Should all pricing be transparent? Can you even have a mostly self-service motion in PLG with “Contact Me” in your pricing? But how common is Contact Me in 2022? It’s a mix.

Pricing 293
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From 0 to 1 Billion Meetings: How Otter.ai Built a Bottom-Up AI SaaS Without a Single Sales Rep

SaaStr

Here’s the fascinating part: while everyone else was rushing to build on top of OpenAI’s APIs, Sam and his team took the harder path of building their own AI infrastructure. The “Give Away the Store” Pricing Strategy That Actually Worked Most SaaS founders I talk to are terrified of giving away too much value.

Scale 235