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by epberry 1303 days ago
My favorite take on pricing ever is "Index to your Customers' Revenue Growth" (fourth card on this page) https://www.screenshotessays.com/browse. Basically saying that if your cost grows with your customers' revenue or some first derivative of that then you will be set for life.
1 comments

A lot of people complain with SaaS that take a cut on revenue, when it’s not justified. For instance, if you are a payment processor, it makes sense to price based on the volume of transaction (your risk/work increases with the volume of transaction). But if you’re a « pure » SaaS, like a Sales commission software, would it make sense to take a cut on the amount of commission you manage?
Whenever you charge based on "value" rather than on based on cost of providing a service, you risk being undercut by a competitor.