By name: pricing-models description: | SaaS pricing models: per-seat, usage-based, tiered, freemium economics. Stripe subscription schema (Products, Prices, Subscriptions, Metered billing), upgrade/downgrade proration, trial periods, dunning management, LTV:CAC ratio targets. Pricing psychology principles. Use when designing pricing strategy, implementing billing, evaluating pricing model fit. allowed-tools: Read, Grep, Glob
SaaS Pricing Models & Billing
When to use
- Choosing pricing model for a SaaS product
- Implementing subscription billing with Stripe
- Designing upgrade/downgrade flows with proration
- Setting up usage-based metered billing
- Managing failed payments (dunning)
Core principles
- Pricing is product strategy — your pricing model determines what behavior you incentivize
- Value metric alignment — the thing you charge for should grow as value delivered grows
- Freemium is a distribution strategy, not a pricing model — conversion rate 1-5% is normal; plan the economics
- Metered billing lowers entry cost — but increases customer unpredictability anxiety
- LTV:CAC > 3x is the benchmark — below 1x is burning cash; below 3x means slow growth
References available
references/saas-pricing.md— per-seat vs usage-based vs tiered vs flat-rate decision guide, freemium economicsreferences/billing-integration.md— Stripe subscription schema, proration behavior, dunning retry schedule, trial remindersreferences/freemium-strategy.md— conversion benchmarks, activation milestone design, churn targets by segment