N+1 Business Model

The N+1 business model is a strategy where a company offers a basic product or service (the “N” version) at a competitive price, then provides an enhanced or premium version (the “N+1” upgrade) for those seeking additional features or quality. This approach encourages customers to start with the core offering and later choose to pay more for added benefits. It helps the business attract a broad customer base initially, while increasing revenue through upselling more advanced options to those willing to invest further.