Case Study: “Pay what you want” for a SaaS subscription?

Topics: Pricing | Promotions
For: Both B2C and B2B 

👤 Question from

Tabish, founder of a SaaS and marketplace for movers and logistics companies.

❓ Question

[Paraphrased for brevity and confidentiality]

Our software for moving companies generates revenue mainly by charging fees for transactions that happen on the platform (e.g. when they do business with customers or partners that they find on the platform, we take a fee). 

So I want to get as many users as possible to be active on the platform. How much they pay to actually be on the platform is less important. Additionally, most initial customers are in developing countries, so they would be particularly sensitive to “entry costs”.

On the other hand, I want to make sure that users that are on the platform are active and engaged. I’m worried that if I don’t charge a subscription fee, I will have a load of “zombie” users.

I was reading Ariyh’s insight about pay-what-you-want, and that gave me an idea. What if I let users choose to pay what they want for their monthly subscription to be on the platform? 

Would that work, or are there better ways?

🎓 Answer

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