Setting License Tiers
License tiers are useful when buyers have different needs.
They are not useful when they only make the pricing table look busy.
Step 1: Identify real buyer groups
Common buyer groups include:
- Individual users.
- Freelancers.
- Agencies.
- Internal teams.
- Enterprise buyers.
Each group should need something different.
Step 2: Make the difference concrete
Tiers can differ by:
- Activation count.
- Commercial use.
- Client work.
- Team seats.
- Support level.
- Subscription interval.
- Included updates.
Avoid vague tier names without real differences.
Step 3: Keep the first tier useful
The lowest tier should still be a real product.
Do not make the starter tier feel like a trap.
Step 4: Explain the upgrade reason
The buyer should understand why the higher tier costs more.
More activations, broader rights, priority support, team use, and agency use are all understandable reasons.
Step 5: Review terms before publishing
Make sure each tier has clear terms before checkout.
For the broader licensing model, read How Software Licensing Works for Developers.