61% of SaaS companies used UBP in some form by 2022
Usage Based Pricing (UBP) is on the rise — 61% of SaaS companies used this model in some form by 2022, VC firm OpenView found.
UBP consists of charging based on how the service or product is consumed, not based on how many people use it; that would be the chair-based approach.
But as often with pricing, things are more fuzzy and many companies actually use mixed models. Consider Zapier, for example: it offers subscription levels with usage as one of the main variables.
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That mixing is one of OpenView’s key findings Usage-based pricing report: “It is not based on usage or subscription pricing. Today, SaaS companies are turning to more complex, hybrid models,” the authors wrote.
The company’s report, now in its second edition, is based on responses collected from private SaaS companies between July and August 2022. That was a few months ago, so the data may be a little behind, but it still reflects the new spirit that founders are in.