Glossary > Tiered Pricing

Tiered Pricing

In a SaaS (Software as a Service) model, tiered pricing is often used to offer different levels of access to a software application based on the customer’s needs or usage. The customer can choose the tier that best fits their needs and budget, with each tier offering different features, storage capacity, or number of users.

For example, a company might offer a basic tier with limited features and storage at a low monthly price, and then offer more advanced tiers with more features and storage at higher monthly prices. This allows the company to offer a range of pricing options to meet the needs of different customers while encouraging customers to upgrade to higher-priced tiers as their needs grow.

The tiered pricing structure can be a flexible and scalable way to generate revenue in a SaaS model, while also providing customers with a range of options to meet their needs.

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