Tiered Subscription Structures

Ever happened that you’ve subscribed to an OTT platform like Netfliix, but haven’t watched anything in weeks? Still paying for it, though. Or maybe you’re on a premium plan for a tool, but you only use 2-3 of its 50+ features. Happens more often than we think. In fact, studies show that on average, users actively engage with just 20% to 40% of the features they subscribe to. But we rarely question it. We just keep renewing the subscription. AI companies, though, had to rethink this approach. With costs driven by GPU cycles, API hits, and real-time processing, they need precise ways to capture value. Interestingly, over 85% of them have moved to usage-based pricing "Pay for what you use." But this flexibility isn’t without its headaches: - Unpredictable bills - Budgeting headaches for CFOs - Complex revenue recognition Companies are now trying to find a balanced approach One that captures the real value delivered while maintaining cost predictability. Here’s how some companies are tackling this: - quso.ai : Fixed monthly rates, but with credits for more advanced features. This approach helps them capture value without scaring customers with surprise bills, providing a mix of predictability and flexibility. - TableSprint: Transparent, tiered pricing with clear usage limits. This gives teams the confidence to scale without worrying about runaway costs, while also creating clear upgrade paths for power users. - Resemble AI: Subscription fees with clear limits for voice generation. Customers only pay for the words they actually generate, aligning cost directly with value while keeping bills predictable . These companies are finding clever ways to reduce billing anxiety without giving up the flexibility that AI products demand. It’s a fine line to walk – capture value without overwhelming your customers. What’s the most creative pricing model you’ve seen lately?

Founders are in the dark about pricing trends because there's very little data out there on how startups price their products. So Flowglad (YC) audited the pricing of 164 startups in Y Combinator's W25 batch. 🔍 Here's how today's best startups actually monetize their products: - Subscription still dominates at 33.5%. However, it's rarely simple - tiered plans, annual discounts, and per-seat models reign supreme. - Usage-based models are rising at 18.9%, aligning pricing directly with customer value, yet most companies cushion this behind bundles or prepaid credits. - Most surprising: 47.6% of companies show no public pricing at all. They're opting for tailored, sales-led conversion for now. Many of these teams do want to show public pricing eventually - but first want to experiment with pricing over discovery calls. Once they understand their customers' willingness to pay, they will put up public pricing. Some of these companies have sales-led enterprise products where public pricing doesn't make sense. "Free" isn't a pricing model - it's an entry strategy. 41.5% of companies offer a free entry path, but only as a stepping stone toward subscription or usage-based tiers. Plan design patterns matter too. We found 69% offer tiered plans, nudging customers up-market. Metered usage or credit packs, aligning revenue closely to actual customer usage was a close second. Why does this matter? Pricing shapes customer experience, influences adoption speed, and ultimately decides your scalability. Your billing UX is your business UX. Pricing experimentation is normal this early on. Yet, it's seldom easy to implement and change course when insights come in. Payments and billing have this association with being a headache. What if it didn't? Don't you deserve to model revenue the way customers informed you? Curious how these trends align or clash with your pricing model? Would love to hear your thoughts.

One-size-fits-all membership tiers are broken.  They leave money and members on the table. Generic sequences confuse your subscribers.  They miss out on the value meant for them.  And your premium offers never reach the right eyes. 1. Map each tier's journey separately  Track what each member needs, build for that.  2. Automate tier-specific onboarding sequences  Deliver the right message to the right member at the right time.  3. Layer in upsells tailored to behavior  Identify upgrade signals and guide them up the ladder.  Everything runs without manual effort.  Members get a seamless experience.  You get more engagement, upgrades, and renewals.