🤔 What’s the best pricing model?
🧐 What level of effort do you plan to drive sales?
🤯 Can you cross-sell to existing customers, or is this a fresh brand?
You pick the right pricing model based on your commitment to sales & marketing and what profit margin you’re trying to hit. This article is a reference guide on how to launch your sales strategy. Use the table to compare different models, and click the links to discover the pros and cons. The popularity data comes from our own white label SaaS customer base.
Below is a list of all the pricing strategies you can resell your white label SaaS with.
✅ = recommended
This involves offering a free basic version of your software, allowing users to upgrade to a premium version with more features and capabilities. For example, this is ChipBot’s model (see our pricing page).
I recommend this for brands that can sustain both hit-based and long-form marketing. Also, do not try to do a high-touch sales operation for this plan, since users frequently ghost the brand under this model.
This is where users pay a recurring subscription fee upfront, whether monthly or annually. Freemium can also offer this, but it’s often after the user uses ChipBot.
This requires a moderate sales touch process since users will be skeptical at first. I recommend this if you invest heavily in the design and quality of your brand, along with a good marketing-qualified lead pipeline.
This is the most popular model when looking at ChipBot’s White Label SaaS user base. I imagine this is popular amongst other reseller platforms as well. If you don’t already know, this is similar to a subscription, but the charge doesn’t happen until after a certain duration.
This is the most common practice in the industry for B2B SaaS. I recommend using this if you want to get running with your brand with the least risk. It’s more common to offer a trial with a monthly subscription than an annual one.
This is the second most popular way we’ve seen our white label customers price out their SaaS. You can mix and match custom offerings and other white label SaaS products. Plus, it doesn’t even have to be a SaaS bundle offering. You could offer it as part of “doing business” with the brand if you sell a service like website design or UGC marketing.
It’s a good way to diversify.
This is my go-to approach if I was running a digital agency or niche service offering. Pricing can be anything, and it’s very sticky for traditionally non-sticky customers.
Not a popular option, but it can be interestingly lucrative if pulled off correctly.
If you can charge 2 years of profit or offset the seat cost by cross-selling, you can pull off unique sales strategies.
I recommend this for the bold and the brave. This is very similar to posting your SaaS product on App Sumo.
This is one of those things that many entrepreneurs love to talk about but very few execute on it.
Creating deep integrations with another company can help unleash a large amount of sales but at the cost of sharing risks. API integrations are fine but try not to depend heavily on the partnership to the point you can’t live without it.
Beware of pursuing this unless you have contingency plans that are easy to execute or the relationship is rock solid. Divorce rates are very high after 12 months.
I recommend this when you find a partner that you’ve developed a strong relationship with.
Some white label SaaS have different plans depending on your usage. For example, ChipBot’s white label SaaS offering scales based on how many customers you bring in.
This usage-based structure means a smaller commitment upfront in exchange for a smaller profit margin.
Once you’ve proven you can get a small batch of customers onto your white label SaaS, it makes sense to double down on the commitment and choose a higher plan to resell. This will do 3 things:
Matt is a Houston-based entrepreneur with over a decade of experience building highly scalable web-based technology solutions. Knowledgeable in 12 different programming languages and experienced startup veteran; having worked on 6 others. He's currently the founder and CEO of ChipBot. You can reach Matt on Twitter, LinkedIn, or StackOverflow.