Usage-Based Billing
Usage-based billing - charging customers based on what they actually consume rather than a fixed seat count - has become the dominant model for infrastructure, API, and AI products. Its appeal is straightforward: customers pay for value received, adoption barriers drop, and revenue scales naturally with customer success.
The operational complexity, however, is significant. Usage data must be collected, aggregated, and rated accurately before it can be billed. Hybrid models - where usage charges sit alongside a base subscription - require billing systems that can handle both simultaneously. Proration, overage calculations, and mid-period plan changes all become harder when consumption is the pricing variable rather than a fixed quantity.
These articles cover the rise of usage-based billing in B2B SaaS, the models companies are adopting, and what it takes to implement it without creating a billing operations problem.
Articles
2 articles on usage-based billing
The rise of usage-based billing in B2B SaaS
Three out of five companies now incorporate usage-based pricing. Here's what's driving the shift, how to select the right consumption metrics, and what implementation...
The rise of usage-based billing in SaaS companies
Usage-based billing - charging customers according to actual consumption - is gaining significant traction. Here's what's driving it and what it means for SaaS...
Usage-based billing without the operational overhead
Bunny handles metered billing, hybrid models, and mid-period changes - so your pricing flexibility doesn't create a billing headache.