Usage-Based

In the usage-based pricing model, customers are charged based on their actual usage of the SaaS product or service. The pricing is directly linked to specific usage metrics, such as the number of active users, data storage utilized, API calls made, or other measurable parameters. Customers pay only for the resources they consume, making it a flexible option for businesses with varying usage needs. This model is ideal for SaaS products with fluctuating or unpredictable usage patterns.

Example: A video conferencing SaaS applies usage-based pricing for its business customers. They charge $0.05 per minute of video conferencing usage. If a customer conducts a 30-minute video conference, the cost would be 1.50€ (30 minutes * 0.05€ per minute) invoiced at the end of the billing period.

TIP

More details about Usage-Based API are available here (opens new window).

TIP

To get the date of the next invoice please refer to the webhooks documentation.

Note

Usage-Based can also be use together with flat fee.