Feature-based pricing charges customers according to which features they can access. Plans are differentiated by feature sets, so customers pay more to unlock more capabilities rather than for usage or seats.
Feature-based pricing differentiates plans by what the product can do, not how much it is used or by how many people. Customers pay more to unlock more capabilities. It is the logic behind most tiered SaaS: the higher tier is not more of the same, it is access to features the lower tier lacks.
How Feature-based pricing works
The vendor groups features into plans, with higher-priced plans unlocking more advanced capabilities. A customer chooses the plan whose feature set matches their needs and upgrades when they need a feature gated to a higher plan. The differentiation is the feature boundary, deciding which capabilities belong in which plan.
Feature-based pricing is enforced through entitlements: the system checks whether a customer’s plan includes a feature before granting access. It is usually combined with tiered packaging and sometimes with usage limits, so a plan is defined by both its features and its capacity.
Feature-based pricing examples
A SaaS tool gates SSO, advanced analytics, and audit logs to its Enterprise plan, while Basic has core features only. A design app puts collaboration and version history in Pro. A CRM reserves automation and custom reporting for higher tiers.
The classic “Enterprise has SSO” pattern is feature-based pricing: a capability that costs little to deliver but signals and serves the high-value segment becomes a plan differentiator.
Comparison
| Charges by | ||
|---|---|---|
| Feature-based | Which capabilities are unlocked | |
| Usage-based | How much is consumed | |
| Seat-based | How many users |
Benefits & when to use it
Feature-based pricing segments customers by need and creates clear upgrade triggers: a customer hits a feature they need and upgrades to get it. It works well when different segments genuinely value different capabilities, and it pairs naturally with tiered packaging.
Its risk is gating features customers consider essential, which frustrates them, or over-fragmenting capabilities into confusing plans. Good feature-based pricing gates capabilities that map to real segment differences, not arbitrary ones. It is enforced by entitlements.
FAQ
What is feature-based pricing?
Charging customers according to which features they can access. Plans are differentiated by feature sets, so customers pay more to unlock more capabilities rather than for usage or seats.
How is feature-based pricing different from usage-based pricing?
Feature-based pricing charges for which capabilities are unlocked; usage-based pricing charges for how much is consumed. One gates access to features by plan; the other meters consumption. Products often combine both.
How is feature-based pricing enforced?
Through entitlements: the system checks whether a customer's plan includes a feature before granting access. This keeps feature gating consistent with what each customer paid for.
How Credyt handles Feature-based pricing
Credyt's entitlements enforce feature-based plans. A plan's included features and limits are expressed as entitlements that Credyt checks at runtime, so access matches what the customer bought. Combined with metered usage allowances, a product can run feature-differentiated tiers that also include usage, all enforced in one system. Explore Credyt →