Usage Based Pricing Done Right

usagebased.org

6 pointsswyx3 comments

"Transactional models are flexible pricing where customers only pay for what they have used during the period. In the UB subscription model, customers commit to their desired level of usage."

How does that make usage based pricing better than transactional? Is it because the commitment in UB pricing will reduce the unit price comparatively?

Hey Manoj, creator of the project here.

Both transactional and usage-based subscription are usage based models because the metric you are billed on is tied to usage. In one, there's no minimum cost (think twilio) and in another there's tiers of usage (hence subscription) - like Zapier where you can only buy Zaps in specified blocks. So if you want to use 433 zaps, you will still be billed for 500. So it's kinda like a subscription.

I will try to make this more explicit.

Got it

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