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SaaS Business Model

1. Subscription Model Basics

The subscription model, in which services are provided in exchange for regular payments, enables a stable revenue stream and encourages continuous service improvement.

2. Types of Pricing Plans (Pay-as-you-go, Fixed, Hybrid)

  • Pay-as-you-go Model:
    Charges are based on actual usage volume.

  • Fixed Pricing Model:
    A flat-rate fee allows for unlimited use within the scope of the plan.

  • Hybrid Model:
    A combination of a base fee and additional charges based on usage.

3. LTV (Customer Lifetime Value) and Churn Rate

  • LTV (Customer Lifetime Value):
    The total profit a customer is expected to generate over the entire duration of their relationship with the service.

  • Churn Rate:
    The percentage of users who cancel their subscriptions over a given period.

These metrics are key to understanding the health and growth potential of a SaaS business.

4. SaaSus Platform and Stripe Billing Integration

The SaaSus Platform handles the design of pricing plans, as well as the recording and management of usage data. By integrating with payment services such as Stripe, it enables flexible and automated billing operations for SaaS businesses.

  • Managing Pricing Plans and Usage Data:
    SaaS applications send usage data such as feature access and operation counts via API. This data is recorded in SaaSus Platform and used to calculate charges based on predefined pricing plans.

  • Automated Billing with Stripe Integration:
    By simply registering a Stripe secret key, you can link your SaaSus pricing plans to Stripe price information, enabling automatic billing through Stripe.

  • Plan Changes and Upgrades:
    Pricing plans can be updated within SaaSus Platform in response to customer needs or usage patterns. These changes are automatically reflected in the Stripe subscription.