Usage-based pricing is increasing, but will not replace other models • TechCrunch

61% of SaaS companies will use UBP in some form by 2022

Usage Based Pricing (UBP) It’s on the rise – 61% of SaaS companies will use this model in some form by 2022, according to VC firm OpenView.

UBP involves paying based on how the service or product is consumed, not how many people are using it; It is a seat based approach.

But often in pricing, things are more nuanced, and many companies are actually using integrated models. Consider Zapier, for example: it offers subscription tiers that include consumption as key variables.

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That integration is one of the key findings of OpenView’s State of Use-Based Pricing report: “It’s not usage-based or subscription pricing. Today’s SaaS companies are turning to complex, hybrid models,” the authors wrote.

Now in its second edition, the company’s report is based on responses collected from private SaaS companies from July to August 2022. That was a few months ago, so the data may be a bit out of date, but it still reflects the new spirit in which founders find themselves.