Stytch’s pricing structure: How it works and how to model your own

Stytch is an all-in-one platform for authentication that has a pricing model that prevents them from suffering from revenue leakage and enables them to scale.

In this article, we'll cover:

• How  Stytch’s pricing model works 
• The types of companies that could benefit from a similar pricing model
• How to build your own Stytch-like pricing model
• How Orb can support you in that process

But first, let's look at a more fleshed-out explanation of what Stytch is and how it works.

What is Stytch?

Stytch is a developer platform that simplifies and enhances user authentication. It allows developers to implement secure, user-friendly login and registration processes. Its platform eliminates the need for traditional passwords. 

How does Stytch work?

At its core, Stytch offers a suite of APIs and SDKs. These tools allow developers to integrate Stytch's authentication methods directly into their applications. 

When a user wants to log in or sign up, instead of being presented with a traditional username/password form, they are given options like:

• Email magic links: A unique, time-sensitive link is sent to the user's email, clicking on which authenticates them.
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• Social logins: Users can leverage their existing accounts on platforms like Google or Facebook to log in.
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• Biometrics: Authentication using fingerprints or facial recognition.
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• One-time passcodes: Temporary codes sent via SMS or email for added security.
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• Web3 logins: Support for cryptocurrency wallets.

Behind the scenes, Stytch handles all of the complex authentication processes. It's like having a dedicated authentication team working for you – without the overhead.

Stytch features

Here’s a quick breakdown of the features that Stytch offers: 

• Password-less authentication: Stytch eliminates the need for traditional passwords. They help reduce the risk of breaches and improve user experience.
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• Multi-factor authentication: This authentication adds an extra layer of security. Stytch offers options for authentication through SMS, email, and apps.
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• Session management: Provides granular control over user sessions, including validation and revocation.
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• B2B SaaS authentication: Offers features specifically designed for B2B applications. These features include single sign-on (SSO) and organization management, among others.
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• Fraud & risk prevention: Stytch includes tools like device fingerprinting and strong CAPTCHA. These features help detect and prevent fraudulent activity.

Though Stytch competitors have some of these features too, none of them offer the level of granularity in their pricing models that Stytch does. That’s what we’ll be covering next.

Stytch pricing models explained  

Stytch's pricing structure caters to the diverse needs of its users. They offer distinct models for B2B SaaS authentication and consumer authentication. There’s also an extra add-on for fraud and risk prevention.

Let’s break these three models in more detail: 

B2B SaaS authentication pricing

Stytch's B2B SaaS authentication pricing model is tiered in four groups:

• Starter: This free tier is ideal for prototyping and testing. It includes essential authentication and authorization features. You also get limited units for organizations, members, and machine-to-machine (M2M) tokens.
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• Pro: Priced at $249 per month, the Pro plan provides increased units and features compared to the Starter plan. It allows for three enterprise SSO connections and the ability to remove Stytch branding and customize email designs.
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• Scale: At $799 per month, the Scale plan offers even more units and includes eight enterprise SSO connections. Companies also gain the ability to enforce organization-level MFA policies.
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• Enterprise: This plan comes with custom pricing and is designed for large-scale deployments. It offers unlimited SSO connections, SCIM support, bot detection, device fingerprinting, enterprise support, and a 99.999% uptime SLA.

For B2B SaaS authentication, extra units beyond those included in each plan can be purchased at a set price per unit.

Consumer authentication pricing

Stytch pricing also accommodates consumer-facing applications with its consumer authentication plans. Their pricing tiers include the following:

• Starter: This free tier offers basic features and a limited number of active users and M2M tokens.
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• Pro: Priced at $249 per month, the Pro plan increases the number of active users and M2M tokens allowed. It also includes the ability to remove Stytch branding and customize email designs.
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• Enterprise: With custom pricing, the Enterprise plan is suitable for large-scale consumer applications. It includes bot detection, device fingerprinting, enterprise support, and a 99.999% uptime SLA.

Fraud & risk prevention pricing

Stytch's fraud and risk prevention offering is an add-on available for both B2B SaaS and consumer authentication plans. Stytch pricing for these is divided into two plans:

• Starter: This plan costs $500 per month and includes full API & SDKs for device fingerprinting and device intelligence. It also offers authorization rules, an observability dashboard, and full support.
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• Enterprise: With custom pricing, the Enterprise plan provides advanced features. These are custom fraud analytics, strong CAPTCHA, enterprise support, full data retention, and a 99.999% uptime SLA.

For fraud and risk prevention, more fingerprint units can be purchased at a set price per unit.

What kind of companies benefit from a Stytch pricing model?

Stytch's flexible pricing structure makes it an attractive option for a wide variety of companies. Let’s look at some examples:

• Startups and small businesses: The free starter plans provide an entry point for these companies. They can experiment with Stytch's password-less authentication solutions without incurring any upfront costs. As they grow, they can upgrade to higher tiers to access more features and accommodate increased usage.
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• High-growth companies: For businesses experiencing rapid expansion, Stytch's usage-based billing is ideal. It lets them scale their authentication infrastructure in line with their user base. The result? It helps them avoid unnecessary expenses.
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• Enterprises: Large organizations with complex authentication needs can leverage Stytch's Enterprise plans.
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• Companies across various industries: The Stytch pricing model is adaptable to a range of specific use cases and budgets.

It caters to SaaS companies who want to speed up onboarding and e-commerce platforms aiming to reduce cart abandonment. It can also be useful for fintech firms and web3 companies exploring decentralized identity solutions.

How to build your own Stytch-like pricing model

Here are the key steps and factors to consider:

1. Identify your value metrics: Determine the core units that drive value for your customers. In Stytch's case, these are monthly active users (MAUs), machine-to-machine tokens, and, for B2B, the number of companies.
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2. Tiered structure: Design a tiered pricing structure with different plans. These plans should cater to varying customer needs and budgets. Offer a free tier to attract early adopters and provide a low barrier to entry.
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3. Usage-based billing: Implement usage-based billing for key value metrics. In other words, it allows customers to pay for what they use and scales their usage as they grow.
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4. Add-ons: Consider offering more features or services as add-ons. Doing so will enable customers to tailor their plans to their specific requirements.
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5. Enterprise plans: Create plans for enterprise customers with high usage and specific needs. Offer premium features, dedicated support, and SLAs to meet their expectations.
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6. Transparency and flexibility: Ensure your pricing model is transparent and easy to understand. Provide clear documentation and tools to help customers estimate their costs and choose the right plan. Offer flexible billing options, such as monthly or annual subscriptions.

Next steps: Learn how Orb’s features solve billing for you

Looking to emulate the Stytch pricing model but have it be tailor-made for your particular niche industry and service offering? Here's how Orb can bolster your pricing strategy too:

• Precision billing: Orb tracks every billable event. We ensure accurate and transparent invoices for your customers — just like Stytch needs to do with their various usage-based metrics.
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• Scalable plans: Orb's plan versioning empowers you to create and manage diverse pricing tiers. Adapt your pricing as your business grows — like how Stytch offers different tiers for B2B and consumer authentication.
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• Data-driven insights: Orb transforms complex usage data into actionable insights. This advantage is crucial for products with granular usage metrics like Stytch's active users and M2M tokens.
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• Simplified workflow: Integrations with data warehouses and accounting software streamline operations. Direct integrations are essential for managing the intricacies of Stytch's pricing model.
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• Customizable billing: Define your own usage metrics and pricing models using our interface and custom SQL editor. You can mirror the flexibility Stytch provides its customers.

The proof is in the results, and product managers at Perplexity and Vercel trust Orb to build and manage their complex pricing structures because they know this. 

Explore Orb's capabilities and schedule a free demo today.