How to Price Your SaaS: The 3 Models That Actually Work for Indie Hackers

Pricing is not a math problem. It's a psychology problem.

Many indie hackers underprice their products because they are afraid people won't pay. But charging too little can actually hurt your conversion rates because people associate low price with low quality.

Here are the 3 pricing models that work for indie hackers:

1. The Flat Rate (Keep it Simple)

One price, all features included. This is great for early-stage products because it's easy for the customer to understand and easy for you to build.

Tip: Make it a monthly or annual subscription.

2. Usage-Based (Pay for Value)

Charge based on how much they use the product (e.g., number of emails sent, API calls). This aligns your revenue with the value they get.

3. The Freemium (The Hook)

Offer a free version with limited features or usage, and a paid version with everything. This is great for getting users in the door, but it can increase your support burden.