Skip to content

SaaS · Pricing · Conversion

Hormozi pricing for SaaS — the per-seat ladder that closes on the second-cheapest option

Five tiers, one anchor, and the second-cheapest plan that closes the deal

🧴💰🎯
If you have been living under a rock, Alex Hormozi has spent five years yelling one idea at the internet: price tiers should step up roughly 3x in cost for roughly 10x in perceived value. The buyer scans the ladder, sees the giant Enterprise number at the top, and the tier you actually want them on suddenly looks reasonable. It is anchoring, dressed up as generosity. Most SaaS pricing pages get this wrong. Three tiers, all within 2x of each other, no clear "obvious" choice. The buyer freezes. Hormozi's fix: five tiers, with deliberate value leaps between them, and an Enterprise anchor that nobody actually buys but that does all the heavy lifting for the tier you do want to sell. Here is the velocity-x plans seed. Free is the loss leader. Small Business is for solo operators. Starter is the conversion target — most popular, adds the admin dashboard, is the second-cheapest visible paid plan. Pro is the value-density leap (5x API quota, real team features). Enterprise is the anchor.
        
      
Spoiler: nobody buys Enterprise. That is fine. Enterprise exists so Pro looks like a steal, and Pro exists so Starter looks like the safe middle. The "most popular" badge on Starter is not a lie — it is the plan you have engineered the page to sell. The buyer's eye lands on the second-cheapest paid tier 80% of the time, every UX study going back a decade confirms this. The catch: per-seat billing means your invoice query has to actually compose base + (seats * per_seat_aud_cents) every cycle. Do not do this in app code. Put it in the database as a view so your dashboard, your Stripe sync, and your CSV export all agree on the number.
        
      
Plot twist: once the ladder is right, you stop discounting. You never need a "20% off if you sign up today" popup again, because the page is already doing the discount work — the buyer feels the saving when they look at Pro and see it is a third the price of Enterprise. Discounts on top of a Hormozi ladder feel desperate. Do not @ me. The Verdict: stop building three-tier pricing pages with $9 / $19 / $29 and a vibe. Build five tiers, anchor at the top, put the "most popular" badge on the second-cheapest paid plan, and let the schema do the maths. Your conversion rate will pick up, your support load on "which plan do I need" will drop, and the next person reading your pricing page will not have to think.
Let us make some quick suggestions?
Please provide your full name.
Please provide your phone number.
Please provide a valid phone number.
Please provide your email address.
Please provide a valid email address.
Please provide your brand name or website.
Please provide your brand name or website.