I’m no SaaS expert and I don’t know about its best pricing models or strategies. However, I just want to highlight a “best practice” that I have noticed recently which I believe will help you as a marketer.
When I did a quick research on the different SaaS pricing models I realized that none of the blog posts I have come across highlighted this particular strategy. So I decided to share it with you and I believe it can be applied to (almost) all things cloud.
Just in case.
Software as a service (SaaS) is a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted. It is sometimes referred to as “on-demand software”.
If there’s a SaaS product that I love the most then it has to be Evernote. Because that’s the first (non-Microsoft and non-Google) cloud productivity service that I have ever tested and fell in love with (thanks to Google Notebook’s demise).
As you probably know, Evernote is now a clear dominant in the SaaS productivity space. Of course, there are a lot of other (popular and useful) SaaS products but I don’t like any of them (including Dropbox) as much as I do Evernote.
Evernote was offering just one paid plan (called Evernote Premium) until last year (ignoring Evernote for Business) and then they introduced another level of paid plan called the Evernote Plus.
Evernote Plus costs 50% less than the original Premium plan but still I didn’t care much about its pricing plans as the free plan was offering almost everything I (and probably you) need. Besides, I have always considered Evernote’s paid plans as expensive.
Wait, I’m pretty sure that you won’t agree with me but I was thinking like: Evernote Premium costs $49.99/year while Microsoft Office 365 (with a ton of apps and features and add-ons) costs only $99.99/year.
And I do understand that it may not be a good idea to compare Office suite with Evernote but anyway that’s how I judged it and that’s why I refused to go Premium all these years. [Read more…]