Utilization-based pricing is rising, however not changing different fashions •

61% of SaaS firms used UBP in some type in 2022

Utilization-based pricing (UBP) is on the rise — 61% of SaaS firms used this mannequin in some type in 2022, VC agency OpenView came upon.

UBP consists of charging primarily based on how the service or product is consumed, not on how many individuals are utilizing it; that will be the seat-based method.

However as usually in pricing, issues are extra blurred, and plenty of firms are literally utilizing blended fashions. Consider Zapier, for instance: It affords subscription tiers that embrace consumption as one among its major variables.

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That mixing is among the key findings of OpenView’s State of Utilization-Based mostly Pricing report: “It’s not usage-based or subscription pricing. Right now SaaS firms are turning to extra advanced, hybrid fashions,” the authors wrote.

Now in its second version, the agency’s report is predicated on responses collected between July and August 2022 from non-public SaaS firms. That was a number of months in the past, so the info could also be lagging a bit, nevertheless it nonetheless displays the brand new spirit wherein founders discover themselves.

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