Performance Based Pricing Model

Overview | Examples
Performance-based pricing is a pricing model in which customers are charged based solely on the results they achieve. This approach ties the price to a specific value metric, such as the number of leads generated or the savings realized through the use of the product. As a result, the amount due per period can fluctuate based on the level of performance achieved.
Pros
  • Customers only pay for results - so there is a direct correlation between price and value
  • Forces SaaS to stay laser focused on delivering performance
Cons
  • Can be difficult to measure and automate
  • Revenue per customer may go up and down drastically every period
Overall Ranking
Overall ranking is based on data from 339 SaaS companies. Last updated on: Thu May 11 2023
Performance Based Pricing Model appears approx 0% in 339 SaaS companies analyzed by PricingSaaS.
Category Ranking
Category ranking measures the prevalence of pricing model within the given category as a % of all pricing models within that category.
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