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Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
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Based on the guidance in our SaaS pricing book, Price to Scale, there isn’t a one‑size‑fits‑all number for the basic tier’s features. Instead, the recommendation is to focus on the quality and relevance of the features rather than simply aiming for a high count. Here are some key principles from the book to help you decide:
• Core Value First:
Include the essential functionalities that clearly demonstrate the product’s value and solve the most critical problems for your target audience. This helps prospects experience your product’s benefits without overwhelming them from the start.
• Encourage Upgrades:
Your basic tier should leave room for additional, more advanced features in premium tiers. This differentiation motivates customers to upgrade when their needs expand. Think about what capabilities you reserve for higher tiers versus what needs to be in the basic package.
• Feature Grid Approach:
As discussed in the book, creating a detailed grid listing out the features per tier can provide clarity both internally and externally. This exercise involves mapping features against customer needs and ensuring that the basic tier offers enough functionality to be attractive while keeping the door open for upsell opportunities.
• Tailor to Your Market:
What works for one product or market segment may not work for another. The book emphasizes using customer research to determine which features are essential for your specific audience. Often, this means the basic tier might include the three to five most critical functionalities that resonate with the majority of prospective users.
In summary, Price to Scale advises that you focus on the strategic selection of features—ensuring the basic tier is both compelling and a natural lead-in to more advanced, premium features—rather than adhering to a fixed number. This balanced approach helps provide initial value while setting the stage for future upgrades.