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.