Startups Stack Exchange Archive

How to determine monthly, annual and lifetime subscription rates

• posted by: yobddigi on 2016-01-18
• tagged: saas
• score: 2

We have a SaaS business model with options to pay a monthly or annually subscription fee. Also in the beginning as a attraction for sponsors we will be offering a lifetime membership for anyone who gives over a certain amount. How would we go about determining the monthly, annual and lifetime subscription rates for a online service with no current user base? What factors should we take into account?

Answer 8361

• posted by: NuWin on 2016-01-18
• score: 1

Personally I would factor in the following:

• Costs such as start up costs, salary, customer acquisition costs and etc..
• Close competitor’s prices
• Since you are starting a business, you should understand your market and with that information you should have a feel of what customers are willing to pay.

There are other factors as well but with those 3 I think you should be able to come up with a profitable margin.

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