Entitlement

Why Entitlements Break Down at Scale

Ryan Echternacht
Ryan Echternacht
·
10/30/2025

In our previous article, we established that entitlements are the system that determines what features, limits, and resources a customer can access based on what they've purchased—the company-level equivalent of user permissions. We explained why entitlements matter and why they deserve deliberate architectural consideration. But we didn't talk about what happens when you get them wrong.

The Deceptively Simple Beginning

Most entitlement systems start the same way: a few simple checks scattered throughout your codebase asking if a user's plan equals "pro" or "enterprise". It feels right because it works, and shipping fast matters more than perfect architecture. But this innocent beginning hides technical debt that compounds with every new customer, every pricing experiment, and every sales exception.

Issue #1: Hardcoding Plans and Features

The problem starts when you store entitlements as columns in your plans table and reference plan IDs directly in your code. Every new feature adds a column, every pricing change requires a deployment, and every custom deal needs engineering involvement. What seemed like a shortcut becomes a straightjacket.

Every Change Requires Deployment

Want to run a Friday promotion with temporary feature access? That's a code deployment. Sales negotiates custom API limits for an enterprise deal? Another deployment. Need to A/B test a new pricing tier? You guessed it, deployment. Business decisions that should take minutes now require full engineering sprints, leaving your go-to-market team waiting weeks.

Legacy Plans Become Impossible

You need to raise prices but must grandfather existing customers onto their old rates. Now you have

typescript
starter_v1
,
typescript
starter_v2
, and
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starter_v3
as separate plans, each with nearly duplicate entitlements. When you want to change how a feature behaves, you're updating 15 plan versions manually. Six months later, nobody remembers which customers are on which version or why certain accounts have special treatment.

Migrations Become Slow and Risky

Your plans table now has 50+ entitlement columns, and every packaging experiment requires a schema migration. These migrations block deployments, create rollback nightmares, and make it impossible to version entitlements independently from pricing. The database schema that seemed flexible when you had 3 plans becomes a prison when you have 30.

Issue #2: Scattered Entitlement Checks

When you hardcode plan checks directly in code, entitlement logic naturally spreads across every layer: frontend, checks, API gateways and event processing. There's no single source of truth, just dozens of places all independently deciding what customers can access. This creates a web of problems that gets worse as your product grows.

Drift Across Systems

Your frontend shows an "Export to PDF" button because its check says the customer has access. The user clicks it. Your backend returns 403 because its check disagrees. Customer support gets an angry ticket, and has to sort out the details. Multiply this across dozens of features and hundreds of checks, and you're drowning in conflicting implementations.

Performance Degradation

Each request hits multiple sequential checks: feature flags, then entitlements, then permissions. What started as 5 checks per request becomes 50 as your product grows. Response times creep from 50ms to 500ms, and you don't notice until customers complain.

Security Gaps

There are 47 places in your codebase checking if a customer can access premium features. An engineer adds a new endpoint and forgets one check. That premium feature is now accidentally exposed to your free tier. You don't notice until someone points out the revenue leakage, and by then you have no idea how long it's been happening or which customers benefited.

Issue #3: The Exceptions Accumulate

Sales needs a one-off deal for a strategic account. Marketing wants trial extensions for promising leads. Customer Success needs to manually grant features to salvage a relationship. Each exception is "just this once," but they accumulate into a maintenance nightmare that nobody owns.

The Enterprise Deal Nightmare

Sales closes a deal with 500+ seats, custom API limits, and SSO enabled. An engineer hardcodes the exception,

typescript
if (company_id === 'acme') { ... }
. The contract gets amended twice over the next year. Six months later during renewal, you're doing archaeology through the codebase trying to figure out which limits were promised, what they actually paid for, and whether the code matches the contract. Nobody knows the answer.

Manual Database Surgery

Someone runs

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UPDATE customers SET custom_api_limit = 50000 WHERE id = 'acme'
directly in production. There's no audit trail, no approval process, and no clean way to roll it back. The next schema migration breaks the override, and nobody remembers it existed until the customer complains.

Spreadsheet-Driven Entitlements

Engineering keeps "exceptions.xlsx" to track manual overrides. Sales has their own spreadsheet of what was promised. Customer Success has notes buried in Salesforce. You now have three sources of truth, all slightly different, and nobody knows which one is actually correct. When a customer asks what they have access to, the answer is "let me check..."

The Undocumented Override Cascade

A customer has base plan entitlements, plus an add-on for extra seats, plus promotional feature access from last quarter's campaign, plus a trial extension from sales, plus a manual override from customer success. Which one takes precedence when they conflict? The answer lives in someone's head, and they might not work here anymore.

The Compounding Effect

The real nightmare isn't any single issue—it's when they combine. Imagine you need to change "Advanced Analytics" from a boolean feature gate to tiered access. This affects 12 different plan versions (legacy plus current), each with custom overrides in 3 different database tables, plus 6 manual exceptions tracked in spreadsheets. The frontend, backend, and API gateway all need updates, cache invalidation logic needs changes, and documentation needs rewrites.

The business decision takes 5 minutes. Engineering execution takes 2 weeks, and the risk of breaking existing customer access is high. Your competitors launch a new pricing model while you're still waiting for sprint capacity.

The Business Impact

When it's too difficult to experiment with pricing and entitlements, products stick with incorrect pricing far too long. Your competitors iterate on packaging monthly while you iterate yearly because every change is a major engineering project. The lack of pricing agility directly translates to lack of revenue agility—you can't capture market opportunities, test new monetization strategies, or respond to competitive pressure without months of engineering work.

This problem is intensifying in the AI era. Models improve monthly, capabilities shift rapidly, and what customers value evolves as the technology matures. The pace of change demands pricing agility that homegrown entitlement systems simply can't provide.

Takeaway

Entitlement systems break down in predictable ways: hardcoding plans and features makes every change require deployment, scattered checks create drift and performance issues, and accumulated exceptions turn into unmaintainable technical debt. Each issue compounds the others until your entitlement system becomes the limiting factor for your entire go-to-market strategy.

In the AI era where models improve monthly and customer expectations evolve rapidly, companies that can iterate on pricing in days rather than quarters will capture disproportionate value. Your entitlement system isn't just software infrastructure—it's a strategic asset that determines how quickly you can monetize innovation. Get it wrong, and it becomes the anchor that holds everything else back. Get it right, and pricing becomes a core piece of your growth engine.