Billing & Pricing Models

Customers pay a flat recurring fee (monthly, quarterly, annually) for ongoing access to a product or service.

Example: A SaaS tool charges $250/month for access to its platform.

Customers are charged based only on the amount of product or service they use, with no upfront commitment or minimum spend.

Example: An cloud infrastructure company charges $0.10 per API call, invoiced monthly based on actual usage.

Pricing is structured in tiers, where unit rates change once usage crosses certain thresholds.

Example: First 1,000 messages at $0.10 each, next 9,000 at $0.08, then $0.05 beyond 10,000.

Billing is tied to specific results or performance outcomes, rather than just time or usage.

Example: A support platform charges $0.99 per resolution.

Customers pay in advance for a set amount of credits, which are then consumed as they use the product or service.

Example: A data provider sells $50,000 of prepaid API credits, which customers draw down as they make requests.

Customers commit to a minimum spend over a period of time, and their actual usage is tracked against that commitment.

Example: A payments platform requires a $100,000 annual minimum transaction volume, with overages billed at standard rates.

A contract includes multiple commitments across different products or services, all tracked and billed under one agreement.

Invoices are triggered by the completion of predefined project milestones or deliverables.

Example: A services firm invoices 25% at project kickoff, 25% at design handoff, 50% at launch.

A contract that combines multiple billing models into one such as a base subscription fee plus usage-based overages or product-led growth (PLG) plus sales-led growth (SLG).