When you are making up a freemium business model pricing plan, what is a good way to come up with the difference in prices between each tier? It obviously has to include features that entice a buyer to pay more for the product, but what level of price increase is too much?
Pricing is something that you're never going to get perfect right off the bat. Start high, then figure things out with your customers. Remember that it's easier to lower prices than it is to raise them.<p>I will say that it's quite common to have a super-high price tier that hardly anyone buys, that is there to make the other tiers look cheaper by comparison. Not saying that it's a tactic that works 100% of the time, but anecdotally speaking, I see it around on SaaS websites.<p>e.g.<p>Basic - $30<p>Premium - $50 <i>most popular!</i><p>Corporate - $200 (comes with super-duper feature that 99% of people don't need)
I recommend reading Don't Just Roll The Dice, by Neil Davidson. <a href="http://scr.bi/c9n8Gu" rel="nofollow">http://scr.bi/c9n8Gu</a> (via Scribd) Great content, and gives insight to the understanding of customer perceptions in pricing decisions. I found it useful for non-software products as well. Also, can you share what type of business the freemium model would be used for?
One thing to consider. Some people will be relatively price-insensitive and will buy the most expensive option regardless just to ensure they get all the features. So, make your top price point higher than you might initially think.