Tiered Pricing Model

The Tiered Based Pricing Model is a tiered subscription model with different tiers that are solely differentiated based on features. Users buy a plan based on features that they want to access in the product.

• Simple to understand for users
• Customer knows exactly how much they pay
• Consistent revenue stream
• Quick to develop and easy to maintain for SaaS

• Limits options for customer segmentation (essentially, each customer falls into one of the plan buckets)
• All upsells rely on customer discovering and seeing value in features in higher tiers
• Top tier customers have no growth/expansion path

Category ranking measures the prevalence of pricing model within the given category as a % of all pricing models within that category.