What does Per User Per Month (PUPM) mean?
Per User Per Month (PUPM) is a pricing model commonly used in various subscription services and healthcare programmes. It refers to a set or variable fee charged for each user who accesses or uses a service within a specific month.
Here’s a breakdown of the term:
- Per User: This indicates that the fee is charged based on the individual user who is accessing the service.
- Per Month: The fee is associated with a specific monthly timeframe. The service provider bills the contractor based on the number of users who utilised the service in a given month.
Benefits of PUPM Pricing:
- Scalability: PUPM pricing scales automatically with the number of users, making it ideal for services with fluctuating user bases.
- Predictable costs: For contractors, PUPM provides predictable monthly costs based on user activity.
- Revenue certainty: For service providers, PUPM offers a clear picture of potential revenue based on the user base.
Examples of PUPM Pricing:
- Software as a Service (SaaS): Many SaaS applications charge a PUPM fee based on the number of active users per month.
- Streaming services: Streaming platforms like Netflix or Spotify often use PUPM pricing models.
Alternatives to PUPM Pricing:
- Flat fee: A fixed monthly fee is charged regardless of the number of users accessing the service.
- Tiered pricing: Different pricing tiers are offered based on specific features or the number of users allowed.
- Pay-per-use: Users are charged only for the specific service or resource they utilise.
The choice of pricing model depends on the specific service, user base, and desired revenue structure.
