Common SaaS Pricing Models
| Model | How It Works | Best For | Examples |
|---|---|---|---|
| Per-seat | Charge per user per month | Collaboration tools, productivity software | Slack (15/editor) |
| Tiered | Feature bundles at price points | Products with clear upgrade paths | HubSpot (Starter → Professional → Enterprise) |
| Usage-based | Pay for what you consume | Infrastructure, APIs, variable workloads | Twilio (per SMS), Mailchimp (per contact) |
| Hybrid | Base subscription + usage | Enterprise software with AI features | Microsoft Copilot ($30/seat + credits) |
Recommended Alguna Setup
Create your product catalog
Navigate to Products → Add Product
- Create your core product (e.g., “Pro Plan”)
- Add seat-based add-ons (e.g., “Additional Users”)
- Add usage-based add-ons if needed (e.g., “API Calls”)
Build your plans
Navigate to Plans → Create Plan
- Starter: Fixed monthly fee, limited features
- Professional: Per-seat pricing with more features
- Enterprise: Custom pricing (use as quote template)
Configure billing
Navigate to Settings → Billing
- Set billing frequency (monthly or annual with discount)
- Enable proration for mid-cycle upgrades
- Configure auto-renewal settings
Set up self-serve checkout
Enable customers to sign up for Starter and Professional plans without talking to sales. See Self-Serve Quickstart.
Create quote templates for Enterprise
Use Plans as starting templates for custom enterprise deals with volume discounts, multi-year terms, and custom SLAs. See Sales-Led Quickstart.
Billing Flow
Annual vs. Monthly Billing
| Billing Frequency | Pros | Cons |
|---|---|---|
| Monthly | Lower commitment, easier to start | Higher churn, less predictable revenue |
| Annual | Better retention, cash upfront | Harder to close, refund complexity |
| Annual with monthly payment | Balance of commitment and cash flow | More complex billing |
Key Features to Configure
Plans
Create tiered plans with different features and pricing.
Proration
Handle mid-cycle upgrades and downgrades fairly.
Quotes
Create custom quotes for enterprise deals.
Customer Portal
Enable self-service account management.
API Reference
Subscriptions API
Create and manage subscriptions.
Plans API
Retrieve plan details for checkout.
Customers API
Create and manage customer accounts.
Webhooks
Get notified of subscription events.
Related Quick Starts
Self-Serve (PLG)
Credit card checkout and in-app upgrades.
Sales-Led
Custom quotes and enterprise contracts.
Hybrid Motion
Combine self-serve and sales motions.
← Back to Quick Starts
See all quick start guides