Usage Drawdown

This model is similar to Pay-as-you-go, however the main difference is that the usage limit is determined up-front and then users consume (or drawdown from) it throughout the billing period and then it resets again at the beginning of the next billing period.

• Provides a steady expansion revenue path (once someone hits their monthly limit, they move up a tier with a sizeable increase in spend)
• Relatively easy to implement

• The jump from one tier to the next may leave the customer feeling like they are overpaying for extra (unused) capacity
• Only applicable to SaaS where usage can be reset every month (e.g. survey responses)

Category ranking measures the prevalence of pricing model within the given category as a % of all pricing models within that category.