Usage-Based Pricing
Content
Definition
Usage-Based Pricing is a pricing model where the cost to the customer is based on their usage of the product or service, common in cloud services and utilities.
Usage and Context
Usage-based pricing charges customers based on how much they use a product or service.
Frequently asked questions
- What is usage-based pricing model? The usage-based pricing model charges customers based on how much they use a product or service.
- What is the consumption-based model? The consumption-based model charges customers based on the amount of a product or service they use, common in cloud computing and utilities.
- What is the difference between usage-based pricing and seat-based pricing? Usage-based pricing charges customers based on how much they use a product or service, while seat-based pricing charges a fixed rate per user or seat, no matter how much they use it.
Benefits
Usage-based pricing matches costs with usage, making pricing fair and flexible for customers.
Conclusion
Usage-based pricing offers fairness and flexibility by charging customers based on their usage.
