Pricing Model Definitions

IMPORTANT note about all pricing: ALWAYS do a quick search to see if the software offers a discount for not-for-profits as most do offer a discounted pricing structure.

Per User - This is a common pricing model, where you pay different amounts depending on the numbers of people using the service. It's similar to the model used by many companies for physical software licensing, but it's not perfect.

Tiered Per User - Related to this is the strategy of tiered user pricing, where the numbers of permitted users increase in bands rather than single digits. For example, a given SaaS company might be one price for up to 5 users, another for up to 10 and so on. This has some of the same disadvantages as regular per-user pricing and doesn't represent value for people like solopreneurs who may need additional features but not additional users.

Feature Tiered - Another common pricing model is to differentiate prices in tiers based on the services and upgrades available to customers. For example, if you're running an invoicing company, your customers will probably be focused either on the number of customers they can manage or the number of invoices they can send. Working out which is most important will help you decide how to stack your pricing tiers.

Free - No cost ever.

Freemium - some level of the service is free, but the software will then charge (usually based on one of the other models listed) for additional functionality of services.

Flat Rate / Subscription - this model has your organization pay a flat fee--usually either monthly or annually--for use of the platform with little or no limits on usage or functionality.

Transactional Usage - this pricing model charges customers based on their usage of the service. An example is Amazon Cloud Server's pricing. The disadvantage for customers is the impossibility of knowing for sure what their resource usage will be, which makes it difficult to calculate their likely costs. However, this can work very well for customers with fluctuating service usage.

Source: (https://www.inturact.com/blog/the-top-10-saas-pricing-strategies)