I researched the pricing models of 50 leading consumer software companies.

"[Aakash Gupta] These are my top 4 takeaways:

1 - Subscriptions have come to every industry

In every industry, it's worth considering if a subscription makes sense for you.

Recurring revenue, stable cash flow, and higher LTV are all potential prizes.

But, consumers might be annoyed.

2 - Subscriptions aren't the only game in town

Yes, subscription or subscription-like pricing is 56% of this list.

But options like one-time fee, ad-supported, and transaction-based also appear.

And consumers often prefer them.

3 - Industry determines your choice set

If no one is using transaction-based in your industry, you can view it either as:

• ""Not such a good idea"" • Or an opportunity for counter-positioning

I actually love counter-positioning. Think: 37Signals' ONCE brand vs regular SaaS.

4 - The Yin to Your Models' Yang is your strategy

On top of your model, layer on strategies. Things like:

• Free trials: 52% • Freemium: 40% • Dynamic Pricing: 30% • Drip Pricing: 28% • Reverse Trials: 6%

Too often, the pricing story is simplified into ""we have to be subscription.""

Often, it is the right choice. But there's a litany of other options and strategies to consider."

Author

AiUTOMATING PEOPLE, ABN ASIA was founded by people with deep roots in academia, with work experience in the US, Holland, Hungary, Japan, South Korea, Singapore, and Vietnam. ABN Asia is where academia and technology meet opportunity. With our cutting-edge solutions and competent software development services, we're helping businesses level up and take on the global scene. Our commitment: Faster. Better. More reliable. In most cases: Cheaper as well.

Feel free to reach out to us whenever you require IT services, digital consulting, off-the-shelf software solutions, or if you'd like to send us requests for proposals (RFPs). You can contact us at [email protected]. We're ready to assist you with all your technology needs.

© ABN ASIA