Usage‑based pricing (UBP) aligns what customers pay with the value they receive. Done well, it lowers friction to start, expands with adoption, and compounds net revenue retention. For startups, the playbook is to pick a crisp value metric, ship transparent meters and guardrails, and wire pricing into product, billing, and GTM so it’s easy to … Read more
Usage‑based pricing (UBP) has moved from niche to mainstream because it aligns what customers pay with the value they consume, lowers adoption friction, and creates natural expansion as products become core to operations. Done well, it improves win rates, NRR, and margins; done poorly, it creates bill shock and trust erosion. Why usage‑based is surging … Read more
Usage‑based pricing (UBP) is winning because it aligns what customers pay with the value they receive, supports elastic adoption, and reflects the real variable costs introduced by APIs, AI inference, data processing, and automation. For vendors, it expands the funnel with low‑commit entry points while unlocking upside as customers grow. What’s driving the shift Advantages … Read more