Value-Based Pricing Model SaaS

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Value-Based Pricing Model SaaS

Inspired by a conversation on:

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

20VC: Atlassian CEO on Why Everything is Overvalued & Are We in an AI Bubble | Do Margins Matter & Does Defensibility Exist in an AI World | Is Per Seat Pricing Dead & The Future of Vibe Coding with Mike Cannon-Brookes

Host: Harry Stebbings

Timestamp: 00:42:11 - 00:42:38

Listen to Episode • View Podcast • All Ideas from The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

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Feather Flow

Direct Quote

"I think the only logical replacement out there... is some sort of consumption-based model."

Market Gap

Existing pricing models do not align with customer value.

Many SaaS companies rely on traditional per-seat or flat-rate pricing models that do not accurately reflect the value provided to customers. This often leads to customer dissatisfaction, especially when users feel they are paying for features they do not utilize. As businesses evolve, there is a growing need for pricing structures that align more closely with the actual usage and value derived from the software. A shift towards value-based pricing models would enable companies to charge customers based on outcomes and benefits delivered, creating a fairer and more sustainable pricing strategy that fosters long-term customer relationships.

Summary

The proposed business idea is to develop a SaaS platform that adopts a value-based pricing model, enabling companies to charge customers based on the actual value delivered rather than traditional per-seat pricing. This model allows for more flexibility and fairness, ensuring that customers only pay for what they use and appreciate. By implementing advanced analytics and customer feedback mechanisms, this platform can help businesses accurately assess and measure the value they provide. This approach not only enhances customer satisfaction but also encourages companies to continuously improve their offerings to maximize value, ultimately leading to increased customer loyalty and retention.

Categorization

Business Model
SaaS
Target Founder
Generalist
Difficulty
Medium
Time to Revenue
3-6 months
Initial Investment
$1,000-$10,000

Potential MRR (18-24 months)

Conservative
$5,000 - $10,000 MRR
Moderate (Most Likely)
$15,000 - $30,000 MRR
Optimistic
$50,000 - $100,000 MRR

* Estimates assume solo founder/bootstrap scenario with competent execution

Scores

Clarity
8/10
Novelty
7/10
Feasibility
7/10
Market Potential
8/10
Evidence
7/10
Overall
7.4/10
Found on October 13, 2025 • Analyzed on October 13, 2025 10:09 AM

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How should I validate this saas idea before building it?

2:34 PM

Great question! For a saas idea like this, I'd recommend starting with these validation steps:

  1. Customer interviews: Talk to Generalist to understand their pain points
  2. MVP approach: Build a simple landing page to test demand
  3. Competitor analysis: Research existing solutions and identify gaps

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2:35 PM

Yes, and what about the technical implementation? Should I build this myself or hire a team?

2:36 PM

Based on your idea's complexity and 3-6 months, here's my recommendation:

Technical Strategy:

  • Start with no-code tools for rapid prototyping
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