Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
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Cursor sells to three groups, and all three want the same core thing: write code faster with AI help. What changes is what wraps around that core.
The solo developer just wants the AI working inside their editor. No team tools, no dashboards. The professional team wants that same AI plus shared billing, admin controls to add and remove people, and a way to see how the tool is being used. The enterprise group wants all of that plus security and governance: single sign-on, audit trails, dedicated support, and the compliance certifications their legal team requires. Cursor’s packages map cleanly onto those groups: Free, Pro, Business, Enterprise. Free gives a solo developer the core AI for nothing. Pro gives a solo professional the full experience. Business adds the team layer. Enterprise adds the security layer.
The smart part is that the tiers do not ration the AI. Code generation and codebase context are basically the same at every level. What separates the tiers is the admin and org features each group needs. A solo developer does not care about single sign-on, and an enterprise security team does not care whether the free tier has limited completions.
This works because Cursor’s market is huge and everyone’s core job is the same: write code with AI. The only real difference is how each kind of buyer manages, governs, and pays for it. That is exactly where Good-Better-Best packaging shines.
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