Good-Better-Best: How to Design Pricing Tiers
Tiers let different customers pay different amounts for the same product. Done well, they sort buyers by how much value they get. Done badly, they confuse everyone and push most people to the cheapest plan.
How should you design pricing tiers?
Design three tiers aimed at three kinds of customer, not three feature lists. The entry tier gets people started, the middle tier is built for your core customer and should be the obvious choice, and the top tier serves larger or more demanding buyers. Separate tiers by value drivers such as users, usage or advanced features.
What goes in each tier?
Each tier should answer one question: who is this for? Put the features your core customer needs in the middle, keep the entry tier useful but limited, and reserve features that only larger customers value for the top.
| Tier | Who it’s for | What it includes | Role |
|---|---|---|---|
| Good | Individuals, small teams, trying it out | Core job, with limits | Low-friction entry |
| Better | Your core customer | Everything most customers need | The main revenue plan |
| Best | Larger teams, advanced needs | Admin, security, scale, support | Anchor and expansion |
How do you separate the tiers?
Separate tiers with a value metric that grows with the customer’s success, such as seats, contacts, projects or usage, plus a small number of features that clearly matter more to bigger customers, like single sign-on, audit logs and advanced reporting. Choosing the metric is covered on usage vs seat pricing.
How far apart should tier prices be?
Leave clear gaps, often two to three times between tiers in our experience, so each step feels like a real upgrade and the top tier works as an anchor. Tiers priced too close together make the choice feel arbitrary; too far apart and customers get stuck on the entry plan.
- 2 users
- Core scheduling
- Email reminders
- Payments
- Reports
- 10 users
- Online payments
- SMS reminders
- Reports
- Unlimited users
- Multiple locations
- API access
- Priority support
Design the middle plan first.
Build the plan for your core customer, then decide what’s missing from the entry tier and what’s extra in the top one.
What are common tier mistakes?
Common mistakes are too many tiers, a free or entry tier generous enough that nobody upgrades, feature lists nobody can compare, and tiers named after sizes instead of customers. If most customers sit on the cheapest plan, the entry tier is too generous or the middle tier doesn’t solve a bigger problem. See also SaaS pricing page design.
Frequently asked questions
How many pricing tiers should I have?
Three works for most products: an entry tier, a core tier for most customers, and a premium tier.
What is good-better-best pricing?
Three tiers at rising prices, each built for a different kind of customer.
How far apart should tier prices be?
Clear steps, often two to three times between tiers, so each upgrade feels meaningful.
Which tier should be most popular?
Usually the middle one, built for your core customer.
Should I have a free tier?
Only if free users are likely to convert or bring others in. Otherwise use a free trial.
What should be in the top tier?
What larger customers value most: security, admin controls, scale and support.