Choosing the right AWS Marketplace pricing model can simplify billing and match your business needs. Here’s a quick breakdown:
- Pay-as-you-go: Flexible, hourly billing for variable or unpredictable workloads. No upfront commitment.
- Subscription: 12-month upfront payment with up to 40% cost savings. Ideal for steady, year-round usage.
- Contract: Fixed-term pricing (1-36 months) with predictable costs, great for enterprise-level, long-term deployments.
Quick Comparison:
| Feature | Pay-as-you-go | Subscription | Contract |
|---|---|---|---|
| Billing Period | Monthly (usage-based) | 12-month upfront | 1-36 months upfront |
| Cost Structure | Variable | Fixed annual price | Fixed term price |
| Best For | Variable workloads | Predictable usage | Enterprise deployments |
| Cost Savings | Standard rates | Up to 40% savings | Varies by term |
Key Takeaway: Match your pricing model to your customers' usage patterns and your revenue goals for maximum efficiency and value.
SaaS Pricing Options on AWS Marketplace
AWS Marketplace Pricing Options
AWS Marketplace provides three pricing models: pay-as-you-go, subscription, and contract pricing. These options cater to various customer needs and business goals.
Pay-as-you-go (Usage-based) Pricing
This model charges customers based on hourly usage, with bills calculated and issued monthly [2].
Subscription (Annual) Pricing
Customers commit to a 12-month term, paying upfront. This approach can offer savings of up to 40% compared to hourly rates. Once the subscription ends, billing automatically shifts back to hourly pricing [2].
Contract Pricing
Available for 1-, 12-, 24-, or 36-month terms, this option requires upfront payment. It supports AMI-based, container-based, and SaaS products [2].
| Pricing Model | Payment Structure | Ideal For | Main Advantage |
|---|---|---|---|
| Pay-as-you-go | Hourly metering | Variable usage needs | Flexible commitment |
| Subscription | 12-month upfront | Consistent usage | Up to 40% cost savings |
| Contract | Fixed-term upfront | Predictable workloads | Stable long-term pricing |
Important Note: Once a pricing model is set, it cannot be changed after publication. Additionally, free trials are not available for metered products [2][3].
Up next, we'll take a closer look at the pay-as-you-go model and its features.
1. Pay-as-you-go Model
The pay-as-you-go model connects costs directly to usage, making it a great option for customers with fluctuating workloads or those testing products without long-term commitments.
Core Features & Requirements
The AWS Marketplace Metering Service handles usage tracking with these main components:
- Hourly usage reporting: The Metering Service API tracks usage hourly. AWS compiles these records and generates monthly invoices.
- Flexible metering dimensions: Products can include up to 24 different metering dimensions for detailed tracking.
Key Advantages
- Cost tied to usage: Customers only pay for what they use.
- No upfront commitment: Appeals to a wider audience by eliminating initial fees.
- Custom pricing options: Multiple metering dimensions allow for tailored pricing models.
Technical Details
This model requires an IAM role and internet access. Usage records that fail to process won't be billed. Once set, metering dimensions cannot be changed.
Best Use Cases
This approach works well for customers who prefer to pay based on actual consumption or for workloads with inconsistent or unpredictable usage patterns.
Up next, learn how subscription pricing offers stable costs and potential savings.
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2. Subscription Model
The subscription model offers predictable costs with a single 12-month upfront payment. By removing hourly charges during the term, it can save up to 40% compared to standard pricing[2][4].
Core Components
- Each subscription is tied to one EC2 instance, with annual rates based on the instance type.
- Both annual and hourly pricing are required. At the end of the term, billing defaults to hourly for any additional instances.
- Pricing updates are allowed every 90 days, with a 90-day advance notice[2][4].
Amendments & Private Offers
This model provides flexibility through options like:
- Switching between EC2 instance families, sizes, vCPU counts, or CPU generations.
- Increasing the number of instances covered by the subscription.
- Customizing agreements with multi-year terms (up to three years), flexible durations, and tailored pricing arrangements[2][4].
These features enable publishers to adapt contracts to suit enterprise requirements.
Best Use Cases
The annual subscription model works best for:
- Applications running continuously throughout the year.
- Workloads that need consistent resource allocation.
- Businesses aiming for predictable IT budgets.
- Teams looking to reduce costs on frequently used services.
This approach combines cost savings with operational flexibility, making it a strong option for enterprise environments.
Next, take a look at the custom contract pricing model.
3. Contract Pricing Model
This model is designed for AMI-, container-, and SaaS-based offerings. It provides buyers with pricing stability and sellers with consistent, recurring revenue.
Core Features
- Terms available for 1, 12, 24, or 36 months, with private offers extending up to 60 months [5].
- Payment options include upfront payments or scheduled installments [5].
- Usage entitlements are managed through the AWS Marketplace Entitlement Service [5].
- Contracts can include optional auto-renewal [5].
- Tiered pricing dimensions with additional usage billed as needed [5].
These features cater to enterprises that require predictable budgets and defined usage rights.
Flexibility and Control
- Midterm upgrades are allowed.
- A one-hour grace period is provided for post-term metering.
- SaaS contracts include a 48-hour window for cancellations and refunds [5].
Best Fit Scenarios
- Enterprise applications with steady resource requirements.
- Multi-year SaaS deployments with clear entitlement needs [5].
Up next: Compare all pricing models side by side in the chart.
Pricing Model Comparison
Here's a quick side-by-side comparison of three common pricing models to help you decide which one suits your needs:
| Feature | Pay-as-you-go | Subscription | Contract |
|---|---|---|---|
| Billing Period | Monthly based on usage | 12-month term, billed upfront | 1, 12, 24, or 36 months, billed upfront |
| Cost Structure | Variable based on consumption | Fixed annual price | Fixed term price |
| Metering Basis | Hourly consumption | Annual subscription | License duration commitment |
| Pricing Flexibility | High – pay only for usage | Medium – 12-month commitment | Medium – term commitment |
| Cost Savings | Standard rates | Up to 40% vs. hourly rates[1] | Varies by term |
| Best For | Variable workloads, dev/test, seasonal demand | Predictable usage, 12-month projects, annual budgeting | Enterprise deployments, multi-year planning, defined entitlements |
| Payment Options | Billed monthly | Billed upfront | Billed upfront |
When choosing a model, consider how your customers use your product and your revenue goals. This table provides a clear snapshot to align your pricing strategy with customer behaviors and financial objectives.
Conclusion
Use this checklist to align your offering with the most suitable AWS Marketplace pricing model:
- Pay-as-you-go: No upfront fees, hourly billing, ideal for workloads that are variable or seasonal.
- Subscription: A 12-month upfront payment that can save up to 40% compared to hourly rates, perfect for steady, year-round usage.
- Contract: Prepaid licenses for 1 to 36 months, offering predictable costs and steady revenue, suitable for enterprise-level deployments.
Key details to keep in mind:
- Pricing lock-in: Once published, pricing can't be modified without a review. Updates for non-SaaS products may take 30–90 days for AWS approval.
- Currency: All prices must be listed in USD.
- Free trials: Available for all SaaS product listings.
If you're planning any pricing updates or changes, consult the AWS Marketplace Seller Operations team [2]. By choosing the right pricing model and aligning it with how your product is delivered and your customers' needs, you can create a reliable revenue stream while providing clear value to your audience.