Joshua Franklin Wiedeman

Good-Better-Best Tiers

Good-Better-Best (GBB) is a three-tier pricing structure: a basic option (Good), a middle option (Better), and a premium option (Best). It is common in SaaS, telecom, streaming, and services. Three tiers cover different budgets without overwhelming the buyer. The middle tier is often the most chosen, which makes it the main revenue lever.

How it works

Given three options, many people avoid the extremes and pick the middle. Good is a low-friction entry point for price-sensitive buyers. Better is built for your ideal customer. Best serves buyers who want more and also makes Better look reasonable by comparison. Each tier should fit a specific type of customer, not an arbitrary split of features.

How to do it

  1. Define one customer profile per tier. Example: Good for individuals, Better for growing teams, Best for large organizations. If you cannot name three distinct profiles, you may not need three tiers.
  2. Set starting prices with clear gaps. Example: $19, $49, $99. Adjust based on conversion data.
  3. Give each tier one or two named reasons to upgrade. Example: Good to Better adds team collaboration and analytics; Better to Best adds custom integrations and a dedicated manager.
  4. Highlight Better on the pricing page: center position, “Most popular” label, strongest button.
  5. Offer annual billing at a discount, shown as “2 months free,” next to the monthly price.

What to measure

  • Tier mix: share of new customers on each tier, tracked monthly.
  • Revenue per new customer: new revenue divided by new customers across all tiers.
  • Upgrade rate: share of Good customers who move to Better (and Better to Best) within 6-12 months.

Best practices

  • Name tiers for who they serve, such as “Starter, Professional, Enterprise.” Avoid “Tier 1, Tier 2, Tier 3.”
  • Put a full feature comparison table below the pricing cards for buyers who want every detail.
  • Add a “Talk to sales” option at or above Best for buyers who need custom terms.

Common pitfalls

  • Making Good too generous. If it covers most needs, no one upgrades. Use natural limits such as seats or storage.
  • Making Good too weak. A barely usable entry tier drives away the people you want to start with.
  • Spacing the prices too evenly. If Best is only slightly more than Better, many buyers jump to Best and skip your target tier. Leave a larger gap above the middle.