If you want to maximize profits but not at the cost of offering your customers a great deal, choosing the perfect pricing model in SaaS is crucial for you. But you may wonder what type of pricing model is best for your SaaS product, right? If so, this element SaaS pricing tips – LTD or subscription model is the best deal in SaaS for you.
SaaS- Software-as-a-Service is a great model for eCommerce to market its products/services to customers. Using SaaS, you will access tools hosted in the cloud without maintaining servers or installing software. There are many dissimilar pricing models SaaS offers, among all LTD and subscription models are considered best.
SaaS Pricing Tips | LTD or Subscription Model Which Is the Best Deals in SaaS
What Is Life Time Deal (LTD) Model In SaaS?
LDT- Life Time Deal is a term that typically mentions subscriptions to SaaS products. It is a special deal for SaaS subscribers. It lets users have unlimited access to SaaS products or software as long as it is still effective and accessible. SaaS frequently offer an LTD at a cut-off on the pay monthly price to inspire people to purchase their products.
In addition to attracting more new people to buy SaaS products, LTD has also often been a part of its customer-holding strategy. It has been proven that a Life Time Deal always makes a huge buzz and therefore inspires existing clients to become long-term users. LTD also offers a great benefit for SaaS products user in terms of cost.
Key Benefits of The LTD in SaaS
Saving Huge Bucks
This is considered the leading benefit for SaaS products going with the LDT. On the off chance that you may need to pay a big amount to compare to usual, it will save you huge. You never need to pay monthly or yearly while getting an LTD for SaaS products.
Life Time Support
Most of the SaaS LTD deals offer lifetime customer support. That said you never need to worry about whether the products you are using either will get support from a SaaS company or not.
Similar Community
SaaS Life Time Deals will help you build and be a part of a promised community with people who honestly want to see you doing well. Besides, you can ask for any suggestions or advice from a newcomer or even share your experience with SaaS products or else.
Pros of The LTD Model
- Simple & transparent.
- Great way to save money.
- Premium supports.
- Lifetime update.
- Unlimited use (in most cases).
- No monthly or yearly fees are applicable.
- Enjoy all the benefits while saving a huge time.
- Often LTD value is lower than the products’ lifetime value.
Cons of The LTD Model
- May cost you huge money at a time.
- It is a bit difficult to afford for the newbie or those with a tight budget.
- It could be most annoying if the LTD offering company is not reliable.
- LTD products’ quality is often questionable.
What Is a Subscription Model in SaaS?
In the subscription model of SaaS products, the user pays a monthly flat rate to access the software. The subscription model has been used by SaaS businesses for a long time and it growing rate of over 300% in the last seven years. Some SaaS company’s use subscription-based pricing models will choose to implement a tiered subscription model.
That is why there are many different subscription options with different features and different pricing offered. Using a tiered-based subscription pricing model is beneficial for SaaS companies but not for the user. Because it allows SaaS companies a minor entry point, while great chance to upsell in the future. However, many SaaS companies also offer the free version which is known as the fermium pricing package.
Key Benefits of The Subscription Model in SaaS
Subscription-based pricing models are becoming popular for particularly companies looking to grow and hold customers. However, Subscription-based models also bring numerous benefits for SaaS products user like as;
Tailored Package
This is the most common benefit of the subscription-based pricing model. The customer has the choice of whatever they need to grow their business. They particularly pay for the software they subscribed to. Business characteristics are varying from business to business. That said software requirements for any specific business could be unique. In that case, a subscription model of a SaaS deal is the best fit.
Invest Less
This is another great logic to go with the subscription-based pricing model of SaaS products. You never need to invest a huge amount of money other than a nominal monthly fee. Or, you may go for the yearly subscription package and get a big discount often offered by the Saas companies. So that you can invest the extra money in the ad or something like that purpose.
Furthermore, it has been proved that subscription-based pricing models are around 219% further moneymaking for businesses than a one-time pricing model. So if you are a business owner subscription pricing model is a great opportunity to achieve the desired ROI.
Update Info of The Tools You Are Using
You will never want to miss the software update that you are currently using, isn’t it? As a regular user, you will get notified if there any update occurs. Moreover, SaaS products provider often offers extra benefits, feature, and more for their subscriber. Getting a subscription-based price model will allow you to enjoy all the up-to-date benefits offered by SaaS companies.
Pros of The Subscription Model
- Minor investment.
- Flexibility to get the tools as per your business need.
- You have the option to examine which tools and their price best fit your business.
- Customized packaging.
- Option to upgrade or downgrade of subscription (for most SaaS providers.)
- Subscription-based pricing models often come with a free trial version.
- Most of the SaaS product providers offer a money-back guarantee for their monthly subscribers.
- Many SaaS companies offer a big off for their regular and loyal customer.
Cons of The Subscription Model
- It could be a bit tricky on which pricing plan to get particularly for a newbie.
- Some packages might offer a lack of customization that may not meet your requirements.
- Most of the starter or standard monthly subscription comes with limited features.
- Often there will be a boundary for the user/seat to use the software you pay for.
LTD or Subscription Model Which Is the Best Deals in SaaS for Your Business?
SaaS is such a progressive business model that offers a cloud-based software solution to its customers. They have many pricing options for multiple users worldwide. LTD and subscription-based pricing are the most commonly used among them. Both have advantages and disadvantages as well in terms of their feature and pricing.
The LTD-based pricing model is the humblest, ideal, and most informal option for some customers. It allows the customer to save huge bucks that they could invest for promotional purposes. On the other hand, subscription-based pricing models could make sense positively for those who want to test the water with a minimum initial investment. It mostly works best for those who blend different models for extra flexibility.
That said according to your business requirements, you are solely responsible to choose the pricing model. However, if you are a newbie or on a tight budget or want to test the water first or in an evaluation stage, better you go for the subscription model. Otherwise, LTD is the right choice for you.
Final Thought
Now, you have a detailed reply on LTD or subscription model which is the best deal in SaaS for your business, isn’t it? As we mention above, both models come with some tremendous benefits while putting a few of down sights. Yet LTD models sound sexiest, but the subscription model is the most commonly used in SaaS products.
Is this information going to help you? If so, then why not give it a try and share it with your friends and connections? And, if you find any point that we missed, please let us know, and we’ll include that as a Thank You Bonus.