Pricing Models

Flat-Rate Pricing

A single fixed price that gives customers access to all features with no limits on users or usage.

Flat-rate pricing is the simplest model: one price, one product, unlimited access. It is easy to communicate, easy to budget for, and eliminates upgrade friction since customers never hit a usage wall. The challenge is that it leaves expansion revenue on the table — a company with ten users pays the same as a company with ten thousand. Flat-rate pricing is most common in the early stages of a product when the builder does not yet know enough about customer segments to differentiate, or for very simple, single-use-case tools where variation in usage is low. It becomes increasingly hard to sustain as the business scales because price must be set for the median customer, undercharging large customers and potentially overcharging small ones. Most businesses that start flat-rate eventually migrate to tiered or usage-based models.