Introduction

For an additional $5/month you can get this great feature! This is the essence of add-on pricing model. A company will charge a certain amount for a product and for an additional fee, provide additional features. Add-ons give companies a great way to upsell customers into higher priced plans.

Overview

PROS
  • Upsell opportunities
  • Customers who don't need add-ons don't have to pay extra
CONS
  • Customers might feel they are being nickeled and dimed

Breakdown of the Pros

Upsell opportunities

Once a customer begins seeing the value of a product, it's frequently much more straightforward to sell them on using more of it, some strategies to optimize add-ons:

  • teasing customers with potential value through visibly locked features. For example, disable a navigation bar option.
  • add-on free trials
  • Allowing customers to opt-in easily at checkout
  • Bundling Add-ons in packages


Customers who don't need add-ons don't have to pay extra

Don't need a certain add-on feature? No problem! One of the great things about add-ons is the choice a customer has whether or not they choose to opt into one.


Breakdown of the Cons

Customers might feel they are being nickeled and dimed

Depending on what features are being gated through add-on pricing, a customer may feel like they are being squeezed. To avoid this try not to gate features which are deemed "essential" by customers behind add-on walls, add-on features . 

Who should use add-ons?

Add-ons typically are best utilized to gate specific features which are useful only to specific segments, but no useful enough to warrant creating a whole new tier around — for example, having a custom domain or white labeling. An ideal add-on is one which is not business critical but nice to have by all, or business critical only to a few.


WHO SHOULD USE IT

Add-ons typically are best utilized to gate specific features which are useful only to specific segments, but no useful enough to warrant creating a whole new tier around — for example, having a custom domain or white labeling. An ideal add-on is one which is not business critical but nice to have by all, or business critical only to a few.


Implementation

Create products in Stripe for each add-on, the subscription in Stripe can have each add-on as an additional plan.

The User Interface

Create products in Stripe for each add-on, the subscription in Stripe can have each add-on as an additional plan.

SUBSCRIPTION MANAGEMENT
See Live Example

Examples

Own a Subscription SaaS Product?
Use the UI/UX Toolkit for Stripe Billing