Price on the value you create for the customer, not on your costs, and start higher than feels comfortable: it's easier to give discounts than to raise prices on everyone. Most indie products do well with two or three plans split by a usage limit that grows with the customer, a free trial or a small free tier, and an annual option.
Start from value, not cost
Your server bill says nothing about what the product is worth. Ask what it saves or earns the customer: hours a month, a hire they don't need, revenue they'd otherwise lose. A price that is a small slice of that value is easy to say yes to. Most first-time makers price too low, which attracts customers who churn and leaves no budget to grow.
Pick what you charge for
The best pricing unit grows with the value the customer gets: seats for team tools, projects or sites for agency tools, volume (emails, minutes, credits) for usage-heavy products. Avoid a unit customers can't predict, or they'll hesitate to sign up.
How many plans
- One plan is fine at the very start; it keeps the decision simple.
- Two or three plans is the usual shape later: a starter plan, the one you expect most people to choose, and one for heavier users.
- Split plans by the pricing unit and a few features that matter to larger customers, not by dozens of small checkboxes.
- Name plans by who they're for (Solo, Team, Business) so people pick themselves.
Free trial or freemium?
A free trial (full product for a limited time) suits products whose value shows quickly. A free tier (a limited product forever) suits products that spread when people use them, like anything with sharing or a public badge. A free tier costs you support and hosting for people who may never pay, so keep it narrow.
Annual billing and discounts
Offer an annual plan at a discount, commonly around two months free. It improves your cash flow and keeps customers longer. For launch, a limited early-bird price for the first customers is a fair way to reward early adopters without lowering your list price forever.
When to raise prices
If almost nobody pushes back on price, it's probably too low. Raise prices for new customers as the product improves, and keep existing customers on their old price for a while; it builds goodwill and costs little. Put your pricing on your site and your launch page: visitors who can't find a price often leave.
Show your pricing where people discover you
IndieLaunch product pages show your pricing model and plans next to your screenshots, so visitors know what to expect before they click.
Frequently asked questions
- How much should I charge for my SaaS?
- Work out what the product saves or earns a typical customer each month and charge a small fraction of it. Then test: if nobody objects to the price, raise it for new customers.
- Should I offer a lifetime deal?
- Only with a clear limit and a reason, such as funding early development. Lifetime customers never pay again but keep costing support and hosting, so too many can hurt a small product.
- Should I show my prices publicly?
- For self-serve products, yes. A public pricing page lets visitors qualify themselves and answers the first question most of them have. Hidden pricing fits sales-led products for large companies.