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What is Tiers + Transaction-Based Pricing?

This pricing model combines a recurring fee for a specific pricing tier with a transaction-based fee. 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. Transaction-based Pricing charges a fee that is equal to a share of the transaction value processed by your product. A typical example for this pricing model are payment processing fees. Combining these models allows monetizing both of these different factors that provide value to your customers.

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Why this model?

You are targeting different customer profiles, so it’s a great idea to have different pricing tiers that are targeted toward these different customer segments. Having a base fee for each tier and adding a transaction-based fee on top of that allows you to charge for the base value of your product as well as for the value that increases with transaction volume. Examples: Chargebee, Recurly