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The ability to bill customers based on how they consume your product is a powerful and non-arbitrary pricing methodology which effectively increases usage and revenue.
By leveraging user actions to provide value-based billing, both you and your customers end up winning.
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For SaaS companies that have implemented usage-based pricing, the journey toward effective implementation of Events-Based Billing is halfway complete.
You have effective tools and processes for gathering the necessary data that is necessary to measure and price your offering based on speci...
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41 reads
Usage-based pricing is a go-to-market model where the customer pays based on how much they use your product or service.
It goes by many names: consumption-based pricing, pay-per-use pricing, and pay-as-you-go pricing.
The simplest examples of these are utility bills like water and el...
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93 reads
Level 1: Pay As You Grow
This model increased...
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33 reads
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If your costs scale with usage then usage based pricing aligns your costs with your customers' spend. This prevents very large customers from being your worst customers, by generating lots of revenue, but costing you money because the account is gross-margin negative.
If yo...
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