Startups often fail not because the product lacks features, but because it doesn’t match the needs of the right group. One of the most overlooked steps when starting a tech startup is what type of product you should be building and how many versions you should offer. Your idea may be good, but how it’s delivered may make or break it.
Why Product Variety is Important From the Beginning
One product does not always fit all users. In many tech industries, companies have different types of the same product to cater to the needs of different segments of users. A good example is seen in smartphones. Brands like Samsung have the same fundamental phone model available in various formats: standard, Plus and Ultra.
These options have some basic features in common, however, each version is built for a different type of user. The base version fits the general needs, but the Ultra version may have a better display, camera, or performance tools. This gives the customers the power to choose according to their tastes or budget.
The same principle works in gaming platforms. Some offer only one or two types of games, while others give a full mix. That might include simple slot-based formats, but also high-end features that caters to high stakes players, such as live dealer tables, specialized VIP rooms, and broader selections.
This range caters for both casual and experienced users. Startups can use this concept by having tiers of products, even if the only difference between them is minimal. Building with this variety in mind, early on, can give you more reach without having to rebuild the product later on.
Matching Features and User Capability & Value
Products should not just have any options, those options should fit the ability of the user to use or understand them. A startup might create a tool with high-level functions, but if the users are not able to handle the complexity, the tool loses its value.
This is where usability plays a big role. New tech may promise high performance but unless the people using it know how to use it properly, they won’t get the benefit. That’s why many platforms test simplified interfaces or guided features first, and only expand when users adapt.
At the same time, the features in your product have to match your customer’s needs and willingness to pay. Some users are only interested in core features. Others want the speed, depth of data, or specialized control.

These preferences can change depending on what segment you’re targeting. Business users may be willing to pay for batch automation, but individual users will be more interested in ease of access. Matching those preferences to a version of the product that feels like it was built for them builds trust and use over time.
Testing Fit Before You Build Full Scale
Product-market fit is often missed when founders assume demand exists without testing it first. A product might sound good, but unless users actually want it and find it useful, it will fail to grow.
This happened with products like Google Glass, where strong tech failed to match market expectations. To avoid this, founders should test ideas before committing to full versions. One way to do that is by asking potential users what matters most. Surveys, interviews, and prototype testing can show where demand really exists.
If users prefer one version of a product over another, that data can guide which version gets built first. Instead of releasing every tier at once, it’s better to start small, test feedback, and improve with each step. Some startups begin with a simple model, then build premium or high-tier versions based on user demand. This approach saves money and reduces risk.
Building Around Product Tiers: Budget and Scalability
Offering different types of products is also not just about user choice – it helps with managing your internal resources. You can balance out what you build based on the strength of your team and your available funds.
Tools such as ITONICS recommend assessing each version of your tech according to scope, cost, possible impact and complexity. This helps in rating whether your team has the internal skill or needs outside help in delivering the advanced version. If the top-tier one will put off the full launch, or burn your budget, then it may be better to begin with the basic one.
It helps to build a scalable model as well. If the initial version is working well, it’s easier to add features later. The same holds true in SaaS or app development: If the core of it all is stable, premium add-ons can come later.