Allows companies to offer multiple packages with different features and product combinations available at different price points. The number of packages can vary, but most subscription companies offer two or three pricing tiers.

Beyond two or three options, however, things start to go downhill—offering too many choices leads to indecision and lower sales. It's easy to try appealing to many customer types with varying budgets by adding more and more tiers, leading to a lack of decision and lost sales.

Fixed pricing stays simple: a single product, a fixed set of features, and a fixed price per month.

Flat-rate pricing is easier to communicate and easier to sell. Adding valuable features? Raise your rate. Additional products? The fixed price goes on top of your base fixed rate.

But w...