Is It Time for SaaS Companies to Embrace Usage Based Pricing? 💼

Have you come across the usage-based pricing model for SaaS companies? We know a SaaS business with a strong product and a lean team. But customers are starting to push back. They feel boxed in by the per-seat licensing model. Some teams use the software only occasionally, yet still pay for every seat. Others scale quickly and hit pricing walls. Churn creeps in.

This isn’t an isolated case. More SaaS companies are finding that their pricing model is holding back growth. As a result, SaaS usage based pricing is gaining momentum—offering flexibility and a better match between cost and actual use.

This article explores why per-seat pricing is losing relevance, what this shift means for AI software, and why building strong pricing capability is now essential.

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The Decline of Per-Seat Pricing in B2B SaaS Companies

For years, per-seat pricing made sense. It was simple and predictable. But simplicity has a cost. In today’s fast-moving environment, businesses don’t want to pay for what they don’t use. And they don’t want to be punished for scaling up.

Seat-based models can cause friction. A SaaS company may land a new client, only to lose them six months later because user limits get in the way. Or a startup buys 20 seats, but only uses five actively. That gap becomes a frustration.

As customer expectations shift, more providers are realising that rigid pricing can slow adoption and fuel churn. That’s why SaaS usage based pricing is gaining ground—it offers the flexibility customers now expect. Flexibility is no longer a bonus—it’s a requirement.

Lessons from Sinecure.ai’s Usage Based Pricing Pivot

Sinecure.ai is an AI-powered recruiting workflow platform. In 2025, they made a bold move: they dropped their traditional per-seat licensing in favour of a SaaS usage based pricing model.

Their new pricing structure starts with a free tier—50 profile views a month, plus access to core AI features. As hiring activity grows, customers pay for what they use. More views, more features, more automation—but only when they need it.

The results speak volumes. Recruiters report a 50% reduction in time-to-hire and over $23,000 in annual productivity gains. Sinecure.ai now reaches a broader market, including fast-growing companies without enterprise-level budgets.

But the shift isn’t without challenges. SaaS usage based pricing can lead to revenue volatility. Free-tier users may not convert. And the model must be crystal clear, or it risks confusing customers.

Still, the benefits outweigh the risks. The strategy removes adoption barriers and links price to real value.

How to Price AI Software for B2B SaaS Companies

AI adds a new layer of complexity. Many tools rely on compute-heavy processes like machine learning or large language models. Per-seat pricing doesn’t capture this well.

Instead, value-based or hybrid models work better. Some companies combine flat access fees with usage pricing, such as charging per query, per token, or based on outcomes delivered.

Sinecure.ai’s model is an example of aligning pricing with AI-driven results. Their clients don’t just pay to use software. They pay to save time, improve hiring accuracy, and gain operational efficiency.

That’s what modern pricing should reflect: outcomes, not just access.

Three Steps to Smarter B2B SaaS Pricing

For SaaS leaders and pricing professionals, now is the time to act. If your current model creates friction or limits growth, here’s how to begin:

1. Audit your pricing model. Identify where customers feel frustrated or where value is delivered but not priced. Look for gaps between usage and what you charge. This helps uncover missed revenue and weak spots.

2. Test usage-based or hybrid options. Start small—trial a new pricing approach on one feature or segment. Measure adoption, satisfaction, and revenue. Let real-world feedback guide the next move.

3. Build your pricing capability. Form a small, cross-functional pricing team. Invest in tools to track usage and performance. Treat pricing as a strategic lever, not just a financial task.

Smarter pricing leads to stronger growth, better customer fit, and a more resilient business. Start with these steps and build from there.

Building a High-Performing Pricing Capability

You can have the best pricing model on paper, but without the capability to manage it, things fall apart.

Too often, pricing sits in a silo—handled ad hoc by finance, tweaked by sales, or adjusted reactively. This creates inconsistency and confusion, both inside and outside the business.

High-performing SaaS companies treat pricing as a strategic function. They build cross-functional pricing teams, invest in data tools, and run experiments. They monitor adoption, track feature usage, and adjust pricing based on customer behaviour.

In short, they don’t just set prices. They manage them.

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Flexible, Value-Driven Pricing Is the New SaaS Advantage

Sinecure.ai’s move to SaaS usage based pricing shows where the industry is heading. Customers want value, not constraints. Pricing needs to be flexible, transparent, and aligned with outcomes.

A strong pricing strategy, backed by capable people, doesn’t just increase revenue. It strengthens trust, improves retention, and scales with your business. The future of SaaS belongs to companies that price smartly and build the capability to do it well.

Pricing doesn’t have to hold your business back. With the right model—like SaaS usage based pricing—and the right team, it can drive growth, not friction. So now’s the time to take a closer look. What’s working? What’s getting in the way? Whether you need a quick review or a deeper pricing strategy, let’s talk. Together, we can find the approach that fits your goals and your customers.

For a comprehensive view of building a great pricing team to prevent loss in revenue, Download a complimentary whitepaper on Future Proof Your Pricing Strategy.

Are you a business in need of help aligning your pricing strategy, people and operations to deliver an immediate impact on profit?

If so, please call (+61) 2 9000 1115.

You can also email us at team@taylorwells.com.au if you have any further questions.

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