Table 24 Sept 2026From “What is tiered pricing?”

The Three-Year Migration and Financial Performance Model

Table 2The Three-Year Migration and Financial Performance Model

Commercial Metric	Year 0 (Legacy Flat)	Year 1 (Transition)	Year 2 (Expansion)	Year 3 (Scaled Maturity)
Total Active Customers	1,200	1,380	1,650	2,050
Starter Tier Accounts (\$6k)	0 (All at \$15k)	520 (37.7%)	610 (37.0%)	720 (35.1%)
Professional Tier Accounts (\$18k)	0	580 (42.0%)	710 (43.0%)	880 (42.9%)
Enterprise Tier Accounts (\$48k)	0	280 (20.3%)	330 (20.0%)	450 (22.0%)
Enterprise Accounts with Connector Add-ons	0	45	95	175
Blended Average Revenue Per User (ARPU)	\$15,000	\$19,536	\$21,588	\$23,892
Starter Tier Revenue	\$0	\$3,120,000	\$3,660,000	\$4,320,000
Professional Tier Revenue	\$0	\$10,440,000	\$12,780,000	\$15,840,000
Enterprise Base Tier Revenue	\$0	\$13,440,000	\$15,840,000	\$21,600,000
Connector Expansion Add-On Revenue	\$0	\$540,000	\$1,520,000	\$3,500,000
Transitional Grandfathering Discounts	\$0	-\$580,000	-\$180,000	\$0
Total Realized ARR	\$18,000,000	\$26,960,000	\$33,620,000	\$45,260,000
Gross Revenue Retention (GRR)	82.0%	88.5%	91.2%	93.4%
Net Revenue Retention (NRR)	101.0%	114.2%	121.8%	126.5%
Gross Margin %	71.0%	76.5%	79.2%	81.5%
Implied ARR Valuation Multiple	5.0x	6.5x	7.5x	8.5x
Enterprise Valuation	\$90,000,000	\$175,240,000	\$252,150,000	\$384,710,000

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Source: Table from this essay. Sources and interpretation are given in the article.

PNG4:3, 1600 × 1200, with the title, the source line and the attribution set in the image isoglu-2026-what-is-tiered-pricing-fig03.png

From the essay

Pricing & revenue architecture

What is tiered pricing?

Tiered pricing bundles features into distinct packages with clear boundaries. Design fences that prevent downgrades and protect willingness to pay.

4 Sept 2026

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APA 7

Isoglu, S. (2026). The Three-Year Migration and Financial Performance Model [Table]. isoglu.com. https://isoglu.com/insights/exhibits/isoglu-2026-what-is-tiered-pricing-fig03/

BibTeX

@misc{isoglu-2026-what-is-tiered-pricing-fig03,
  author = {Isoglu, Sinan},
  title = {{The Three-Year Migration and Financial Performance Model}},
  year = {2026},
  howpublished = {Table 2, isoglu.com},
  url = {https://isoglu.com/insights/exhibits/isoglu-2026-what-is-tiered-pricing-fig03/},
  note = {From the essay {What is tiered pricing?}}
}

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