Pricing Strategy Guide

Pricing Models

One-Time Purchase

• Best for: Desktop software, physical goods, courses
• Pros: Simple, high upfront revenue
• Cons: No recurring revenue, harder to update

Subscription (SaaS)

• Best for: Software, services, content
• Pros: Predictable revenue, ongoing relationship
• Cons: Higher churn risk, constant value delivery needed

Freemium

• Best for: Products with network effects, low marginal cost
• Pros: Low barrier to entry, viral potential
• Cons: Conversion optimization critical, free users cost money