Usage model

Usage-based pricing is somewhat less common among SaaS businesses— it's mainly used by telecommunications companies and IT services.

It makes it easier for small companies to get started with your product while avoiding the high upfront fees charged by some subscription companies. On the other end of the scale, it also accounts for additional costs incurred by heavy users, charging them fairly based on the extra time and resources they're consuming.

Charging based on usage does, however, make it much harder to predict revenue, since billing can vary dramatically each month.