December 18, 2025

Designing SaaS Expansion Economics in AI Products

A practical model for pricing tiers, expansion loops, and monetization architecture in AI-native platforms.

Revenue quality is a design outcome.

Key principles

• Price for value metric, not feature count.
• Build role and team expansion into plan structure.
• Separate variable AI usage from platform subscription.
• Use governance controls as enterprise up-sell levers.

A strong tier architecture aligns technical constraints with account expansion behavior.