Subscription Billing Models—Which One Is the Best for Your SaaS Business

Subscription Billing

The subscription billing model got important and faced in recent years. Though the subscription business model has always been here, it gained importance because of the SaaS business market that typically works on this business model. And most recently, the episode of the pandemic gave it an uplift when various businesses pinpointed the recurring need of their customers so that they can monetize these needs to earn profits.

Even if you are already working on the subscription business model, you will have to decide on the billing model for your business. In this blog, we are going to mention some of the best billing models that can help in maximizing recurring revenue. Thereafter, you will be able to see which billing model is suitable for which platform.

Flat Fee Billing

Flat fee billing is to set a fixed price for your SaaS product or services. If your customer base is naïve and your SaaS services or product are not complicated, then you can go for this recurring billing softwar. The subscription period will end and the customer will be liable to pay you the same fixed rate for the services that he wants to get. If he does not want a subscription for a certain month, he will simply cancel the subscription for that specific month. So, this flat fee subscription plan is as simple as the one-time billing model.

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Usage Based Billing

As the name indicates, this billing model bills the customer depending on the usage of the customer. for instance, the customers of internet or electricity pay for the internet and electricity respectively as per their usage. However, the most important factor here is to make the units of the SaaS product. You will need to onboard the sales team, marketing team, and team of developers to offer the product to the customers in the best possible way. This billing model is preferred by customers these days for they believe that they are being charged for what they have used. Also, it is the best billing model to monetize such services. There seems no other way to feasibly monetize such services.

Hybrid Billing Model

If you are willing to cater to a diverse customer base, then you need the hybrid billing model. As per this billing model, you can use not just one but different billing models. The mix of billing models will enable you to cater to all customers who want different billing methods and payment gateways. Businesses that want to onboard all types of customers should opt for this billing model. Those who have the target to increase the customer base and earn from all dimensions should adopt a hybrid billing model.

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Billing Model for Your Business

Now, you need to decide on the billing model for your SaaS subscription business. The billing model for your business will depend on the nature of your business. If you are in the eCommerce subscription business market, you can use hybrid billing. Here, the customers come from across borders and platforms. You need to cater to them accordingly. You need multicurrency support, multiple payment gateway integrations, and offer multiple payment methods. If you do that, then you can expect to cater to all customers.


If you are looking for a subscription management platform that can help you implement flat fee billing, usage-based billing or a hybrid billing model, then you need to consider SubscriptionFlow. It is a robust subscription management software that can manage billing, payment modelling, and analytics. You need a platform that can implement the billing and payment model that can help your business. So, keep and manage your resources accordingly. Make sure that you spend and spare enough resources for the SaaS billing software that will help you implement the billing model of your choice.

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