Performance-Based Pricing for SaaS Tools: Why We Charge 25% of Recovered Revenue

TL;DR: ChurnBack uses a performance-based pricing model: $49/month base fee plus 25% of revenue actually recovered through our cancel flows and dunning. This means if we don't save you money, you barely pay anything. Performance-based pricing aligns the tool's incentives with yours — we only succeed when you succeed.

What is Performance-Based Pricing?

Performance-based pricing is a model where the cost of a service scales with the value it delivers. Instead of charging a large flat fee regardless of results, the provider takes a percentage of the measurable outcome. In the churn recovery space, this means the tool charges based on how much revenue it actually saves — not how many features it has or how many users you have.

How ChurnBack's Pricing Works

ChurnBack's pricing has two components: | Component | Amount | What It Covers | |---|---|---| | Base fee | $49/month | Platform access, cancel flow builder, analytics dashboard, SDK hosting | | Performance fee | 25% of recovered MRR | Only charged on revenue actually saved through ChurnBack's interventions | Example: You have 50 customers attempt to cancel in a month. ChurnBack's cancel flow saves 15 of them, each on a $100/month plan. That is $1,500 in recovered MRR. Your ChurnBack bill: $49 + $375 (25% of $1,500) = $424. Your net benefit: $1,125 in retained revenue you would have lost.

Performance-Based vs. Flat-Fee Pricing

| Factor | Performance-Based (ChurnBack) | Flat Fee (Competitors) | |---|---|---| | Monthly cost | $49 + 25% of recovered | $300-$1,000+/month regardless of results | | Risk to you | Low — you pay only when it works | High — you pay even if it saves nothing | | Incentive alignment | Tool is motivated to save more | Tool gets paid regardless | | Scalability | Cost scales with value | Cost stays fixed even as value grows | | Break-even | Immediate (first saved customer) | May take months to justify the cost |

Why Performance-Based Pricing is Better for You

The math is straightforward. If ChurnBack saves you $0 in a given month, you pay only $49. If it saves you $10,000, you pay $2,549 — and you keep $7,451 you would have otherwise lost. There is no scenario where ChurnBack costs you more than the value it delivers. The 25% fee is always a fraction of recovered revenue. You are never paying for potential — you are paying for results. ChurnBack helps SaaS businesses recover churning customers with intelligent cancel flows and automated dunning. Get started →

FAQ

What is performance-based pricing?

Performance-based pricing is a model where the cost of a service is tied to the measurable outcomes it delivers. In churn recovery, this means paying a percentage of the revenue actually saved, rather than a fixed monthly fee.

How does ChurnBack's pricing work?

ChurnBack charges $49/month as a base fee plus 25% of the monthly recurring revenue recovered through its cancel flows and dunning services. If no revenue is recovered in a given month, you only pay the $49 base.

Is performance-based pricing better than a flat fee?

For most SaaS businesses, yes. Performance-based pricing eliminates the risk of paying for a tool that doesn't deliver results. You only pay more when you're saving more — the incentives are perfectly aligned.

When does ChurnBack become more expensive than flat-fee alternatives?

If ChurnBack recovers more than roughly $3,800/month in MRR for you, the 25% fee exceeds what you'd pay for a typical flat-fee tool. But at that point, you're keeping $2,850+ in revenue you'd have lost — so the ROI is still strongly positive.