Usage Pay as You Go
Overview | Examples
Pay-as-you-go pricing model is where customers pay only for what they have consumed within a given period. This means that their bill every month will go up or down, depending on their usage.
Pros
- Provides a lot of flexibility to customers as they only pay for what they use
- Allows customers to start “small” without big upfront commitments
- Helps SaaS companies with retaining consistent margins when underlying costs are involved (e.g. storage, compute resources, credit card networks, etc.)
Cons
- Often requires a complex infrastructure to track usage and associated billing
- SaaS companies lose predictability in revenue, as the usage may change drastically month-to-month and therefore they may observe large swings in revenue
Overall Ranking
Overall ranking is based on data from 339 SaaS companies. Last updated on: Thu May 11 2023
Usage Pay as You Go appears approx 15% in 339 SaaS companies analyzed by PricingSaaS.
Category Ranking
Category ranking measures the prevalence of pricing model within the given category as a % of all pricing models within that category.
Collaboration