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# The magic of pricing tiers
- URL: https://creatorscience.com/pricing-tiers/
- Published: 2023-07-23T12:35:27.000Z
- Updated: 2026-10-10T02:54:33.000Z
- Author: Jay Clouse
- Tags: Monetization, Community & Memberships, Courses

It's probably safe to assume that you'd be happy if you were able to increase your revenue. But I find that most creators actually make this more complicated than it needs to be.

When you start selling your first product, it feels like magic – like an entire new world has opened up to you!

After the initial honeymoon, you start to wonder, "How can I make that feeling happen again?"

The first answer that usually comes to mind is to create and launch a *new* product. Or, as Nathan Barry called it, [the "Strip Mall" approach](https://creatorscience.com/skyscraper-or-strip-mall/).

But actually, there's a huge opportunity for increasing revenue from your *existing* products...

## The tiered approach

Tiered Pricing models aren't a new thing. You've probably seen it with every software product you've ever purchased:

![](https://creatorscience.com/content/images/2023/07/CleanShot-2023-07-22-at-12.58.46@2x.png)

There are a ton of benefits to tiered pricing:

- More options for accessibility
- Increased average order volume (AOV)
- Price anchoring (the lowest tiers now seem more affordable when compared to the higher tiers)

I even borrowed this approach with The Lab's pricing model:

![](https://creatorscience.com/content/images/2023/07/CleanShot-2023-07-22-at-13.00.10@2x.png)

## The risk of pricing tiers

There is one key risk of creating tiered prices – and that is **analysis paralysis**. 

> The last thing you want to do is to derail a sale by creating confusion around the best purchase option.

Unfortunately, I see a lot of creators make this mistake.

## How to design your tiers

The key to effective pricing tiers is to make the difference *between* the tiers clear and obvious.

Once again borrowing from software pricing, I love using simple pricing tables to compare the benefits of different tiers at a glance.

Those differences should be clear, obvious, and **compelling** to different segments of your target market. If the differences between Tier 1 and Tier 2 are unclear, I'll probably choose to NOT choose anything. And if the differences between Tier 1 and Tier 2 are obvious but not compelling, I will never choose Tier 2.

In software, the difference between tiers is often *usage-based.*

Take for example one of my new favorite tools, [Castmagic](https://www.castmagic.io/pricing/?via=jayclouse&ref=creatorscience.com). The differences between their tiers are largely based on how much you want to use the service:

![](https://creatorscience.com/content/images/2023/07/CleanShot-2023-07-22-at-13.08.12@2x.png)

That may not be as relevant for content creators. For most creators, I think the ideal difference is *access-based*.

Sara Loretta, a certified Notion badass and a member of [The Lab](https://join.creatorscience.com/?ref=creatorscience.com), recently [launched a paid newsletter](https://systms.club/newsletter?ref=creatorscience.com). She has multiple pricing tiers that are differentiated by different levels of feature access:

![](https://creatorscience.com/content/images/2023/07/CleanShot-2023-07-22-at-13.10.55@2x.png)

## My favorite approach

Sara's approach above is one of my favorites. But even access differences may mean that you're creating *new* content on an ongoing basis (which can feel like a perpetual time commitment).

There's an even simpler approach that I think anyone can take with their products right now – and that's creating a *coaching* tier for your product.

In The Lab, the primary difference between our Standard and VIP memberships is two hours of dedicated 1:1 support with me.

![](https://creatorscience.com/content/images/2023/07/CleanShot-2023-07-22-at-13.00.10@2x-1.png)

But this can apply to your digital products too – and I think this is the real opportunity.

The knock against a lot of courses is that students don't often finish them. This creates a whole host of issues:

- Poor customer experience
- Fewer testimonials
- Loss of potential for word-of-mouth referrals

So I like to add a coaching tier to each of my digital products. Check it out with [Build A Beloved Membership](https://app.creatorscience.com/courses/beloved-membership?ref=creatorscience.com):

![](https://creatorscience.com/content/images/2023/07/CleanShot-2023-07-22-at-13.16.27@2x.png)

I literally tack on the equivalent (or near-equivalent) of my hourly consulting rate.

Adding this coaching tier requires no additional product development and I can deploy it immediately at launch. Even better, there are some clear positive outcomes:

- Great product feedback (which can help improve the material)
- The opportunity to intervene (which can help create better student outcomes)
- Better student experience (which can lead to word-of-mouth referrals)
- More finished courses (which can lead to more testimonials)

In my experience, about 25% of students choose the coaching tier – and virtually everyone tells me on the call that they are glad they did.

Of course, this tier comes with the requirement of YOUR time to deliver that 1:1 experience – and for creators, time is typically your most valuable asset.

If you are worried about the time commitment, there are two options for you:

1. Instead of offering 60 minutes of 1:1 support, offer 30 (or 20)
2. Price your second tier high enough that fewer people opt for it, but every sale is meaningful

## Conclusion

If you're looking to quickly increase product revenue, consider adding a higher tier to your offerings. The simplest way to do that is to simply add a 1:1 coaching tier to any product – courses and membership products in particular are a a great fit.