Price and complexity spectrum for SaaS product

Published

The Y axis, SaaS pricing, ranges from a few dollars a month (low) to millions of dollars a year (high), while the X axis, product/service complexity, ranges from simple to try, install, and buy (i.e. Dropbox, Google), to complex solutions with multi-month implementation cycles and long-term contracts.

Almost every SaaS company fits into one of the four quadrants:

  • Self-service companies have low complexity with a low price point
  • Hybrid companies have low complexity with a high price point
  • Enterprise companies have high complexity with a high price point
  • SaaS graveyard companies have high complexity with a low price point