Tiered Pricing
Offering several packages at different price points, each with more features or capacity, so customers self-select the tier that fits their needs and budget.
Why it matters
Tiers let you serve a range of customers and create a natural path to upsell as they grow, capturing more value from bigger users. Designing the tiers well, what gates each level, is central to monetization.
For example
A tool offers Starter, Pro, and Business plans, so a solo user and a 500-person company each find a fit, and grow up the tiers over time.
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Related terms
Also in Starting Up
See how founders actually handle this on Growing and marketing, part of the Starting Up hub.
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