Examining Pricing Models to Discover Profitable SaaS Investments

Software as a service (SaaS) and subscription pricing models dominate the business landscape. SaaS faced a challenging 2022 due to venture capital pullbacks, but the business model has moved upstream with more enterprises adopting SaaS pricing. SaaS is also a popular billing model with lower middle-market software companies, indicating its versatility and business value. The reasons are plenty. SaaS pricing models are conducive to recurring cash flow for companies, user loyalty (since switching products creates a time and cost sink for users) and produce network effects through data collection, giving companies a natural economic moat.  SaaS company valuations have always…...