
Julia Do Prado
Head of Marketing

Explore the three key pricing models for SaaS solutions on Azure Marketplace, tailored to various business needs and usage patterns.
Azure Marketplace offers three main pricing models for SaaS solutions, each tailored to different business needs:
Key Setup Tips:
Quick Insights:
These models help publishers meet customer needs while managing revenue effectively. Choose the right one based on your product's usage patterns, target audience, and revenue goals.
Azure Marketplace offers three main pricing models for monetizing SaaS solutions. Each model caters to different usage patterns and customer needs.
This model charges customers a set fee - either monthly or annually - regardless of how much they use the service. It works well for software with consistent resource usage and provides:
Publishers can create multiple pricing tiers (e.g., Basic, Professional, Enterprise), each offering different features and price points. However, all plans under the same offer must follow the same pricing structure, though prices can vary across regions.
Now, let’s look at a usage-based pricing model.
Pay-as-you-go pricing charges customers based on their actual resource usage. This model relies on specific usage metrics, such as:
Usage Metric | Description | Common Applications |
---|---|---|
Bandwidth | Data transfer volume | Content delivery services |
API Calls | Number of requests | Integration platforms |
Storage | Data storage amount | Backup solutions |
Processing Time | Compute resources used | Analytics tools |
This approach ensures customers are billed only for what they use, making it ideal for solutions with fluctuating or seasonal demand. Publishers must use Azure’s metering service to track and report usage accurately. Additionally, this model can be paired with a base subscription fee for added flexibility.
Lastly, let’s explore a model tailored for team-based applications.
Seat-based pricing charges based on the number of active users accessing the software. This model is a great fit for tools like team collaboration platforms or enterprise applications where more users mean more value. Key factors to consider include:
Once a pricing model is chosen, it cannot be changed, and all plans within the same offer must stick to the same structure. This makes selecting the right model critical for long-term success.
Azure Marketplace supports various payment methods, including Enterprise Agreements, credit cards, and monthly invoicing, ensuring flexibility for customers and steady revenue for publishers.
Follow these steps to configure billing terms and payment schedules:
Finally, integrate Azure's metering service to enable usage-based billing.
Azure's Marketplace metering service lets you bill customers based on their resource consumption. Here's how to set it up:
If your solution charges per user, consider setting up seat-based plans.
Seat-based pricing works well for team-focused solutions where costs scale with the number of users. Here's how to configure it:
Before launching, thoroughly test your setup in a development environment to ensure everything works as intended.
When choosing a pricing model, consider factors like how your product is used, your target audience, and your revenue goals.
Product Usage Patterns
Target Market
Revenue Goals
These elements will help you pinpoint the pricing model that suits your business.
Using the criteria above, match your pricing model with these practical approaches:
Fixed Monthly/Annual Plans Are Best For:
Usage-Based Pricing Works Well For:
Seat-Based Models Make Sense For:
Let’s explore some examples to see how these guidelines apply.
1. Enterprise Data Analytics Platform
A data analytics service uses tiered fixed pricing, offering:
2. Development Tools Platform
A DevOps platform combines subscription and usage-based pricing:
3. Team Collaboration Software
A project management tool adopts a seat-based pricing structure:
Offering bundled deals and additional features can help increase revenue on Azure Marketplace. For instance, you can combine core services with premium add-ons that customers find useful. A common example might be including a base storage allocation with the option to purchase more storage at tiered pricing.
Here are some add-on ideas:
Design your packages to balance flexibility and profitability. Basic plans should cover essential needs, while premium tiers can include advanced features that justify a higher price.
Enterprise clients often require customized pricing plans. Azure Marketplace makes this possible through private offers, which allow for tailored solutions and pricing designed to meet the needs of larger deployments.
Key considerations for enterprise pricing:
When working with enterprise customers, focus on pricing that reflects the value your solution provides to their business. This could include offering advanced features or enhanced security designed to meet enterprise-specific needs.
Fine-tuning your pricing strategy is essential for driving revenue. On Azure Marketplace, price reductions become effective on the first day of the next month, while price increases require a 90-day advance notice. Existing customers on current contracts will retain their pricing until renewal. Any price changes must go through a complete certification process.
To ensure a smooth transition, avoid making multiple offer adjustments at the same time. Instead, align price changes with billing cycles and notify customers well in advance to maintain transparency and trust.
Setting up pricing models on Azure Marketplace requires careful planning and thorough cost evaluation. The platform supports various pricing options - like fixed monthly or yearly plans and usage-based billing - giving publishers the tools to address customer needs while staying profitable.
Here are some key steps to consider:
By following these steps, you can create a pricing model that meets customer expectations and supports your revenue goals. Remember, price reductions take effect the next month, while increases require a 90-day notice period [1].
Use market data and customer insights to keep your pricing strategy effective and competitive on Azure Marketplace.