Insights

B2B SaaS Pricing is Dying—And We Should Have Seen it Coming

Written by Trevor Greenway | Apr 7, 2025 2:36:18 PM

For years, B2B SaaS companies have measured and rewarded the wrong things, and eventually, that approach started shaping product decisions in ways that hurt both businesses and their customers. Now, we’re witnessing a shift—one that was inevitable. Traditional pricing models are dying, and it’s for the better.

The Flawed Numerator-Denominator Approach

Think of B2B SaaS pricing as a fraction. The numerator represents seats and usage, while the denominator represents actual business outcomes. The problem? We’ve always priced based on the numerator, but success is determined by the denominator.

If a SaaS solution is truly impactful, why would we penalize customers for using it more? The moment pricing is tied to seats or usage, friction is introduced—customers start limiting adoption to control costs, which is counterproductive to driving outcomes. A better approach is to align pricing with value delivered. When the denominator (business outcomes) is prioritized, increased usage is encouraged, not restricted.

For accountants, wealth managers, and banks purchasing software, this shift is critical. These professionals need tools that help drive real client outcomes, whether that’s enhancing financial planning, improving business valuations, or streamlining compliance processes. If pricing is based on seats rather than impact, firms are forced to make cost-based adoption decisions rather than prioritizing the best solutions for their clients.

Misaligned Incentives and Product Decisions

The second major flaw in traditional SaaS pricing is that seat-based models became the primary metric for success, driving product decisions that emphasized engagement over outcomes. Companies chased DAUs (daily active users) and MAUs (monthly active users) as leading indicators of success—but were they really?

Maybe. But only if every product decision was made with business outcomes in mind, rather than simply increasing engagement for engagement’s sake. Too often, teams optimized for stickiness and retention metrics at the expense of solving real business problems. AI is now shifting the landscape—changing how we price, how we build teams, and how we measure success.

For financial professionals investing in technology, this misalignment has been a long-standing frustration. Software solutions should be designed to help advisors deliver deeper insights, not just increase logins. Banks, for example, need tools that strengthen relationships with business clients, not ones that charge per advisor login and make it costly to scale expertise across teams.

A New Era: Outcome-Driven Pricing

The denominator should have always been the focus. That’s not to say usage has no value, but prioritizing business outcomes ensures a model that benefits both the SaaS provider and the customer. When interests are aligned, customers are not just willing but happy to pay because they see tangible value.

Great solutions don’t create winners and losers—they create mutual benefit. That’s the future of B2B SaaS pricing. The companies that embrace this shift will thrive, while those clinging to outdated models will struggle to justify their value.

For accountants, wealth managers, and banks, this transformation means moving toward software that is priced on the value it brings to their business and clients. No longer should firms have to choose between financial constraints and adopting tools that drive real impact. Instead, they should demand pricing models that reflect success—because when their clients win, they win too.

The world is evolving, and so should the way we price software. The question is: are we ready to change with it?

 

Author: Trevor Greenway