License & White-Label Types

    SaaS Licensing Models & License Types Explained

    The complete guide to how SaaS is licensed and white-labeled — from source-code purchases and monthly white-label deals to revenue share, MSP, VAR, and reseller arrangements. Compare every license type side-by-side and find the model that fits your business.

    Need a quick definition instead? Read the licensing glossary

    Usage-based licensing and licence-as-a-service

    Usage-based licensing charges by what is consumed — API calls, seats, transactions or active accounts — so cost grows with the buyer’s own revenue. Licence-as-a-service (licensing as a service) delivers the licence itself as a hosted, recurring subscription, with updates and support included.

    Compare them in depth in perpetual vs subscription vs usage-based licensing and white-label vs SaaS licensing revenue-share models.

    What is SaaS licensing?

    SaaS licensing is the legal and commercial agreement that lets one company use, resell, rebrand, or extend another company's software-as-a-service product. Instead of building software from scratch, buyers acquire the right to deploy a proven SaaS under their own brand, in their own market, or as part of their own stack — often called Licensing as a Service (LaaS) or a licensed website deal.

    SaaS licensing models fall into three broad families: ownership licenses (source-code purchase, exclusive rights), usage licenses (monthly white-label, per-user, floating, volume), and partnership licenses (revenue share, MSP, VAR, reseller, territory). The right model depends on your budget, technical capacity, and how much control you want over the product roadmap.

    Subscription-Based

    Recurring monthly or annual fees

    📅

    Monthly Subscription

    Pay monthly, cancel anytime – maximum flexibility

    📆

    Annual Subscription

    Commit yearly, save 15-25% vs monthly pricing

    🗓️

    Multi-Year License

    Lock in pricing for 2-5 years with maximum discounts

    📋

    Term License

    Fixed term (1-3 years) paid upfront, not monthly

    🧪

    Trial / Evaluation License

    Full features for 30-90 days to properly evaluate

    📁

    Project-Based License

    License scoped to a specific project or engagement

    One-Time Purchase

    Single payment for permanent access

    ♾️

    Perpetual License

    Pay once, own forever – no recurring fees

    💻

    Source Code Purchase

    Get the actual code – full ownership and modification rights

    Usage-Based

    Pay based on consumption

    📊

    Usage-Based / Pay-Per-Use

    Only pay for what you actually use – scales with your business

    ⏱️

    Metered License

    Tracked billing based on API calls, storage, or transactions

    🪙

    Token / Credit-Based

    Buy credits upfront, spend them as needed

    🔄

    Elastic License

    Base subscription + extra capacity when you need it

    💳

    Transaction-Based

    Pay per transaction processed – common for payments/APIs

    💾

    Data Volume License

    Pricing based on data stored or processed (GB/TB)

    🖲️

    Capacity-Based (CPU/Core)

    Licensed by server capacity – cores, RAM, or vCPUs

    User-Based

    Pricing per user or seat

    👤

    Per-User / Per-Seat

    Simple per-person pricing – add or remove users anytime

    👥

    Concurrent User License

    Pay for max simultaneous users, not total headcount

    📶

    Tiered Pricing

    Choose your tier: Starter, Pro, or Enterprise

    🏷️

    Named User License

    Tied to specific named individual, not transferable

    Feature-Based

    Pay for specific features

    🧩

    Per-Feature / Modular

    Pick and pay for only the features you need

    🆓

    Freemium

    Start free, upgrade when you need more

    📦

    Flat-Rate Unlimited

    One price, unlimited everything – simple and predictable

    Enterprise

    Custom large-scale agreements

    🏢

    Enterprise License

    Custom terms, dedicated support, volume pricing

    🏛️

    Site License

    Unlimited users at one location – no per-seat counting

    🛠️

    Maintenance & Support Agreement

    Annual fee for updates, patches, and technical support

    ☁️

    BYOL (Bring Your Own License)

    Use your existing licenses in cloud environments

    Partnership

    Revenue sharing and outcome-based

    💹

    Revenue Share

    Pay a percentage of revenue you generate – aligned incentives

    🎯

    Outcome-Based / Success Fee

    Pay based on results achieved – true performance pricing

    Ownership/Legal Type

    Proprietary vs open-source licensing

    🔐

    Proprietary License

    Closed-source – use as-is, no code access

    🔓

    Open-Source License

    Source code available – modify and redistribute freely

    🆓

    Freeware

    Free to use forever, but source code not available

    ⏳

    Shareware / Trial License

    Try before you buy with time or feature limits

    Device & Hardware-Based

    Licenses tied to specific devices or machines

    🖥️

    Per-Device / Per-Machine

    License tied to specific hardware or device

    🔒

    Node-Locked License

    Cryptographically bound to a specific server

    🔀

    Floating License

    Pool of licenses that float between active users

    Volume & Bulk

    Bulk purchasing with volume discounts

    📚

    Volume License

    Buy in bulk, get significant volume discounts

    📦

    Bundle / Suite License

    Multiple products packaged together at a discount

    Reseller & Partner

    MSP, OEM, and partner licensing

    🏪

    MSP / Reseller License

    Special terms for agencies to resell to multiple clients

    ⚙️

    OEM License

    Embed software into your own product or hardware

    Environment-Based

    Dev, test, production, and offline licenses

    👨‍💻

    Developer / Test License

    Free or discounted for development environments only

    🚀

    Runtime / Production License

    Required for live production deployments

    🔌

    Offline / Air-Gapped License

    Works without internet – perfect for secure environments

    Other

    Custom arrangements

    ➕

    Other / Custom

    Custom licensing arrangement

    Understanding License Ownership Types

    Beyond pricing models, software licenses differ in their ownership structure. This is especially important for white-labeling decisions.

    🔐

    Proprietary

    Closed-Source

    You use the software as-is without access to the underlying code. The vendor retains all IP rights. White-labeling requires explicit permission.

    🔓

    Open-Source

    Source Code Available

    Source code is publicly available. You can modify, extend, and often white-label freely. Check specific license terms (MIT, GPL, Apache).

    💡For White-Labelers: Open-source licenses (especially MIT and Apache 2.0) are ideal for white-labeling as they allow rebranding with minimal restrictions. GPL licenses require derivative works to also be open-source, which may affect your business model.

    Quick Comparison

    Compare popular licensing and white-label options at a glance

    License Types

    FeatureMonthlySourceMSPVolume
    Upfront CostLowHighMediumMedium
    Multi-ClientVaries
    Volume Discount
    Best ForStartupsCustom DevAgenciesEnterprise

    White-Label Types

    FeatureFullCo-BrandResellerAPI
    Remove BrandingPartial
    Custom DomainVaries
    Tech RequiredLowLowNoneHigh
    Control LevelFullPartialSalesFull

    Frequently Asked Questions

    Not sure which type is right for you?

    Browse our marketplace and filter by license or white-label type to see what's available, or contact sellers directly to discuss custom arrangements.