Newsletter · 6 min read

Your guide to SaaS packaging 201

Kyle Poyar · Growth Unhinged 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.

• 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.