{"id":16280,"date":"2023-03-07T14:40:00","date_gmt":"2023-03-07T19:40:00","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=16280"},"modified":"2025-01-07T08:40:47","modified_gmt":"2025-01-07T13:40:47","slug":"intacct-saas-billing-best-practices-hybrid-billing-and-more","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/intacct-saas-billing-best-practices-hybrid-billing-and-more\/","title":{"rendered":"SaaS billing best practices: Hybrid billing and more"},"content":{"rendered":"
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\n\t\t\t\t\t\tSaaS billing best practices: Hybrid billing and more\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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Selecting the most profitable subscription pricing model for your SaaS company is one of the biggest decisions across Finance, Product, and Sales. After all, using an inefficient or outdated SaaS billing process<\/a> could cost your company market position, ARR, and customer churn. <\/p>\n\n\n\n

Luckily, by following a few simple SaaS billing best practices, you can optimize your SaaS billing process for long-term growth and profitability. And by using automated accounting software<\/a>, you\u2019ll be able to forecast different billing scenarios far into the future, allowing you to make your choice with total confidence. <\/p>\n\n\n\n

Let\u2019s start by looking at some of the more popular subscription pricing models. <\/p>\n\n\n\n

The most common subscription pricing models, and the SaaS billing process you should use<\/h2>\n\n\n\n

Some SaaS companies that are new to the market stick with a flat-rate subscription pricing model. That approach has its merits: it\u2019s simple, and its transparency will usually leave customers with fewer doubts about signing up. <\/p>\n\n\n\n

As companies expand, however, it makes sense to run forecasts to determine which subscription price model makes the most sense for your unique business. <\/p>\n\n\n\n

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Here are three of the most popular subscription pricing models:<\/p>\n\n\n\n

1. Feature tiers <\/strong><\/p>\n\n\n\n

Feature tiers offer users a variety of predetermined feature bundles, with each ascending feature tier priced higher than the one below. This is an effective subscription price model for companies with audiences who tend to commit to longer contracts, such as corporate teams. The goal is that they\u2019ll see the value in your service as time goes on and steadily upgrade to the top feature tier. <\/p>\n\n\n\n

2. Free trial period<\/strong> <\/p>\n\n\n\n

Offering users a free trial is a very effective way to lower their sales resistance. Just make sure you do everything possible to stay on the up and up. If you take their card info before the free trial, send them a brief courtesy email the week they will be charged. Attention to detail is one of the most important SaaS billing best practices you can follow.<\/p>\n\n\n\n

3. Bundled pricing <\/strong><\/p>\n\n\n\n

This is the subscription pricing model equivalent of a \u201cchoose your adventure\u201d book. Customers can construct the experience they want from your brand by selecting a customized bundle of features they\u2019d like access to. This pricing model is great for building customer loyalty or if you have widely divergent customer segments who use your products for different purposes.<\/p>\n\n\n\n

What else is on the menu for subscription pricing models?<\/p>\n\n\n\n

A closer look at the hybrid SaaS billing process<\/h3>\n\n\n\n

Hybrid billing<\/a> allows SaaS finance leaders even more flexibility to \u201cmix and match\u201d to find the best pricing model for their unique situation. <\/p>\n\n\n\n

Using the robust forecasting abilities of automated accounting software<\/a>, you\u2019ll be able to run detailed analyses of these and other hybrid subscription pricing models: <\/p>\n\n\n\n