“It organized our customers around people that understood what we were doing and got the value and were willing to pay the higher price point — but we cater to all customers.”

Tiering lets you capture willing-to-pay customers without losing price-sensitive ones

Adding a $24.99 video-calling tier alongside the $9.99 messaging tier didn't confuse Talking Parents' lineup — it clarified it. Premium subscribers (predominantly iPhone users) self-selected up. The free web tier kept court-mandated users who genuinely couldn't pay. Every pricing tier should have a distinct customer archetype, not just a feature count.