Definition
An add-on is a paid feature, capacity block, or service that customers can purchase on top of a base plan.
Why it matters
Add-ons let you monetize edge cases without raising the base price for everyone.
Pricing implications
Add-ons work best when value is clear and demand is uneven across customers.
Design choices
Decide whether the add-on is feature-based, capacity-based, or service-based, and set limits with clear outcomes.
Measurement tips
Track attach rate, usage of the add-on, and incremental gross margin by segment.
Checklist
- Define the add-on outcome in plain language.
- Ensure the base plan is required.
- Set usage limits and overage rules.
- Align add-on pricing to cost recovery.
- Provide one example of when to buy it.
- Monitor attach rate by cohort.
- Review pricing after 90 days.
- Avoid bundling required features as add-ons.