The Three-Tier Model#
Most successful email SaaS products use three tiers: Starter, Growth, and Pro (or Business). This covers SMBs, growing teams, and agencies without overwhelming new users with options.
| Plan |
Subscribers |
Price Signal |
Key Gate |
| Starter |
up to 1,000 |
$15/mo |
No automation |
| Growth |
up to 10,000 |
$49/mo |
Automation + segments |
| Pro |
up to 50,000 |
$149/mo |
Priority support + API |
Choosing Feature Gates#
Gate features that are valuable but not essential at entry level. Good gates:
- Automations — visible on Starter, locked until Growth
- Advanced segments — Growth+
- Custom sending domain — Pro or add-on
- API access — Pro or add-on
- Dedicated IP — Pro add-on
Avoid gating features that affect deliverability or basic usability — frustrated free/starter users churn and leave bad reviews.
Upgrade Triggers#
Design the UI to surface upgrade prompts at the right moment:
- Subscriber count reaches 90% of limit → banner + email
- User tries to create an automation on Starter → modal with upgrade CTA
- Team member invite on non-team plan → prompt
Annual Discount#
Offering 2 months free on annual billing (≈16% discount) typically converts 25–40% of monthly subscribers to annual, improving cash flow and reducing churn. Show annual pricing first.
Free Trial vs. Freemium#
A 14-day free trial (no card required) converts better than freemium for SaaS email tools. Freemium creates support burden from users who will never pay.
