Pay-Per-Feature SaaS Pricing: Simple Models that Maximize Revenue (No Bloat)

The Real Story Behind Feature-Based Pricing

When Patrick McKenzie launched Appointment Reminder, he initially offered traditional tiered pricing. After noticing customers only used specific features they needed, he switched to a pay-per-feature model. This change increased average revenue per user by 60% while simplifying his development roadmap.

Why Traditional Feature Bundles Often Fail

Most SaaS products bundle features into tiers because that's what everyone else does. But this approach often leads to feature bloat and confused customers.

The Pay-Per-Feature Framework That Works

1. The Core + Modules Model

Start with a solid core product, then add optional features customers actually want:

• Core: Essential functionality everyone needs
• Modules: Standalone features priced separately
• Custom: Enterprise-specific needs

This approach aligns with customer-driven development.

2. The Value-Based Add-Ons Model

Price additional features based on the specific value they provide:

• Time-saving features
• Revenue-generating capabilities
• Cost-reduction tools

3. The Capability Unlock Model

Let users gradually unlock more advanced capabilities as they need them, following minimum viable process principles.

Implementation Guide

Technical Setup

Use feature flags to control access to individual features. Start with this simple approach:

• Feature configuration table
• User-feature mapping
• Simple toggle system

Pricing Strategy

Follow these principles for pricing individual features:

• Price based on value delivered
• Offer bundle discounts for common feature combinations
• Create clear upgrade paths

Making the Model Work

Start Simple

Begin with just 2-3 optional features. Use case studies to guide feature selection.

Focus on Value Communication

Help users understand the specific value each feature provides:

• Clear feature descriptions
• Real usage examples
• ROI calculations

Revenue Optimization Strategies

Smart approaches to maximize revenue without complexity:

• Create natural feature discovery moments
• Build upgrade paths into user workflows
• Use time-limited trials for premium features

Common Implementation Mistakes

Avoid these pitfalls:

• Offering too many feature choices
• Underpricing high-value features
• Making the base product too limited

Extra Tip: The Power of Feature Bundles

Create smart bundles based on actual usage patterns. Let customers pick individual features but offer a discount when they select common combinations.

Frequently Asked Questions

How many features should I offer separately?

Start with 2-3 high-value features. Add more only when you have clear evidence of demand and can effectively communicate each feature's value.

Should I grandfather existing customers when adding new features?

Yes, always grandfather existing customers and let them opt into the new model if they choose. This builds trust and reduces churn.

How do I handle feature dependencies?

Create logical feature bundles when features depend on each other. Don't make customers piece together technical dependencies.

What's the best way to introduce new paid features?

Start with a free trial period for all users, collect usage data, then transition to paid access for new users while grandfathering active users.

How do I price individual features?

Price based on the measurable value each feature provides. Use customer interviews and usage data to understand willingness to pay.

Recommended Next Steps

1. Audit your current feature usage data

2. Identify standalone features that provide clear value

3. Set up basic feature flagging system

4. Create a simple feature pricing calculator

5. Plan your feature discovery flow

Remember: Start simple and expand based on actual customer needs and usage patterns.

The Psychology of Feature Selection

Users make better decisions when choosing from a limited set of clear options. Design your feature offerings to reduce cognitive load while maximizing value perception. This leads to faster decisions and higher satisfaction.

Building a Sustainable Feature Development Pipeline

Let paid feature requests guide your development priorities. This creates a natural feedback loop between customer needs and product development.

Measuring Feature Success

Track these metrics for each paid feature: adoption rate, usage patterns, support costs, and revenue contribution. Use this data to refine your feature pricing and development strategy.

Common Myths About Pay-Per-Feature Pricing

Taking Action: Your Next Steps

1. List all your current features and their usage rates

2. Identify top 3 features that could be sold separately

3. Design a simple feature flagging system

4. Create value propositions for each paid feature

5. Plan a small test with new customers

Join Our Community of Feature-First Founders

Building a pay-per-feature pricing model? List your SaaS on BetrTesters and join our X Community where we discuss practical strategies for sustainable growth.

Share your feature pricing experiments, get feedback from other founders, and learn from real experiences. Your next breakthrough might come from a conversation with someone who's solved similar challenges.

Start With Documentation

Create a simple system to document every support interaction. Use minimum viable processes to ensure consistency without overwhelming your team.

Build Support-Development Bridges

Set up regular meetings between support and development teams. Share support insights using customized dashboards to keep everyone aligned.

Test Solutions Quickly

Use feature flags to test solutions with small user groups before full rollout. This reduces risk and accelerates learning.

Measure Impact

Track how your solutions affect support volume and user satisfaction. Implement customer health scoring to measure improvement.

Start With Documentation

Create a simple system to document every support interaction. Use minimum viable processes to ensure consistency without overwhelming your team.

Build Support-Development Bridges

Set up regular meetings between support and development teams. Share support insights using customized dashboards to keep everyone aligned.

Test Solutions Quickly

Use feature flags to test solutions with small user groups before full rollout. This reduces risk and accelerates learning.

Measure Impact

Track how your solutions affect support volume and user satisfaction. Implement customer health scoring to measure improvement.