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What is Tiers + Flat-Fee Pricing?

Flat Fee Pricing charges every customer one recurring, fixed fee every billing cycle. Every customer gets access to all of your features. No matter how much your customer uses the product or how many different people login to your customers account, all customers get charged the same price. Pricing Tiers are different packages your customers can choose from that contain a certain set of features, typically a set of three packages like Standard, Gold, and Platinum. Instead of offering just one pricing plan, you segment the pricing of your product into different packages. This allows customers to choose the option that best accommodates their needs.

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Why this model?

You are addressing several different customer segments, so implementing pricing tiers is an excellent idea. If you design your tiers correctly, you can ensure that potential customers find themselves in one of the tiers and confidently make a buying decision. Keep your ideal customer profiles in mind when designing the tiers and ensure there’s a tier that perfectly suits each of them. Tiers allow you to have customers start with an affordable plan, giving you the opportunity to upsell them later into a more expensive one. This approach offers customers a more personalized experience as they feel better understood. Examples: Apple iCloud for individuals, Aira, Aurora Solar, Tribe, Avalara, Katana