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Doing the work

How do I design tiers so buyers pick the right plan and grow into the next one?

Good, better, best works for about two thirds of SaaS companies because it makes the choice easy, so start there unless you have a strong reason not to. Give every tier a job: one to acquire, one to be the obvious default, one to capture the buyers with budget and requirements. Make it instantly clear who each plan is for, because buyers default to the middle tier when they are confused and you lose money on both ends. Sell a feature as an add-on when it is polarising, appeals to a different buyer, or taps a different budget, and resist gating anything that drives engagement. Map the tiers to the real user journey (individual, team, organisation) rather than to a feature list you invented.

Go deeper

4 resources, 1 India-specific, 4 link-checked.

📰 Newsletter
✓ Link checked Free Intermediate

Answers the two packaging questions that actually come up: when to bundle a new feature into a tier and when to sell it as an add-on, and how to give each tier a job. Short, and every principle is testable against your own pricing page.

Your guide to SaaS packaging 201

From Growth Unhinged by Kyle Poyar 6 min read

  • Two-thirds of SaaS companies land on a Good, Better, Best line-up, so treat it as the default starting point.
  • A buyer should not need more than one or two add-ons in the first transaction.
  • If a feature only gets adopted 6 to 12 months after purchase, price it as an add-on rather than bundling it.
  • Make something an add-on only if it is polarizing, hits a different budget, or carries real variable cost.
Open growthunhinged.com
📄 Article
✓ Link checked Free Intermediate

Maps tiers to how adoption actually spreads (casual user, professional, team, organisation) rather than to a feature matrix, using Notion, Databricks, GitHub and dbt. The best argument for delaying monetisation until usage patterns are legible.

Bottom Up Pricing & Packaging: Let the User Journey Be Your Guide

From Andreessen Horowitz by Jennifer Li and Martin Casado long read

  • Across 50 companies studied, the user journey runs casual/freemium, then individual pro, then team, then organization.
  • Grow the user base before monetizing: Databricks charged nothing for three years.
  • GitHub's 5,000 dollars for 20 seats worked as a rate limiter on inbound demand, not a revenue maximizer.
  • Enterprise overtook self-serve around 10M ARR at one infra company and was 70 percent of revenue by 15M.
Open a16z.com
📰 Newsletter
✓ Link checked Free Intermediate

Takes the three models most companies use (flat fee, feature tiers, per seat), names how each one fails, and gives specific repairs like price escalators, fair use policies and lite user seats. Diagnostic rather than inspirational.

Your pricing is (probably) broken: Here's how to fix it

From Growth Unhinged by Kyle Poyar short read

  • A premium tier priced 50 to 100 percent higher typically gets 15 to 25 percent uptake, worth roughly 15 percent more revenue.
  • One in three B2B contracts carries an automatic price escalator, usually 5 to 8 percent a year.
  • Ship 1 or 2 new features a year as standalone add-ons, then bundle them into packages about every 18 months.
  • A lite seat usually prices at 10 to 40 percent of a power user seat.
  • Good, Better, Best leaks revenue because almost everyone defaults to the middle tier.
Open growthunhinged.com

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The same ground, at another level

How pricing and packaging reads from a different seat.

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