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consumption based pricing model software

Billing & Monetization

Consumption-Based Pricing Model Software: 14 Benefits You Don’t Want to Miss

Consumption-based pricing (also referred to as usage-based pricing) charges based on what you use or consume. This usage-based pricing model charges customers only for the resources consumed. For instance, let’s assume a...

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what is a free trial

Accounts Receivable

What is a Free Trial, and Is Offering Free Trials Right for Your SaaS Business?

In the Software-as-a-Service (SaaS) industry, a free trial is a popular acquisition model that allows potential customers to experience the product before committing to a paid subscription. The idea behind this model...
what is cost plus pricing

Accounts Receivable

A Guide to Cost-Plus Pricing: Definition, Benefits and Strategy

One of the most straightforward pricing strategies for the sale of goods and services, cost-plus pricing is a pricing model where a fixed percentage is added to the cost of producing or...
pros and cons of freemium model

Billing & Monetization

Pros and Cons of the Freemium Model & Strategies for Growth

A combination of ‘free’ and ‘premium’, the freemium business model offers basic features of a product or service to users at no cost and charges a premium for supplemental or advanced features...
churn rate

Accounts Receivable

Churn Rates By Industry: Is Your Churn Rate Too High?

Customer churn—the rate at which customers stop doing business with a company—is a critical metric for companies across all industries. High churn rates can directly impact revenue growth, profitability and long-term sustainability....
payment reconciliation

Accounts Receivable

What is Payment Reconciliation & How Does it Work?

Managing payments and transaction records for your business seems easy enough, right? After all, if you’re not doing it the business probably won’t survive. But as businesses grow and cash flow increases,...
manage recurring revenue

Billing & Monetization

Your Guide to Managing Recurring Revenue

In contrast to traditional sales models that consist of one-off purchases, recurring revenue delivers a predictable and stable revenue stream. Occurring at regular intervals, recurring revenue provides companies with revenue on a...
metered billing benefits

Billing & Monetization

How Metered Billing Benefits Your Business

Similar to usage-based and consumption-based billing, metered billing is based on actual usage of a product or service, providing a transparent approach to billing. By establishing a direct link between consumption and...
AR aging

Accounts Receivable

Your Guide to Accounts Receivable Aging Reports & How to Calculate AR Aging

Does your organization extend credit to customers? Do members of your accounts receivable team find themselves overwhelmed with the task of determining which customers have uncollected debt? An accounts receivable (AR) aging...
SaaS Billing Software

Billing & Monetization

What Is the Best SaaS Billing Software?

Your software as a service (SaaS) business is thriving… congratulations! What you’re probably discovering is that the spreadsheets and manual effort used to track software usage and bill customers is no longer...
MRR vs. ARR in SaaS

Billing & Monetization

What Is the Difference Between MRR and ARR in SaaS, and How Do You Calculate Them?

Do you know the definitions of MRR vs. ARR and how to calculate them? These are key metrics for software as a service (SaaS) organizations. Annual recurring revenue (ARR) and monthly recurring...
total contract value

Billing & Monetization

What Is Total Contract Value, and How Does It Differ From Annual Contract Value?

As a software-as-a-service (SaaS) organization, you’re likely familiar with terms like total contract value (TCV) and annual contract value (ACV). For ease though, let’s define them. Sometimes referred to as contract value,...
revenue recognition

Billing & Monetization

Revenue Recognition Simplified

Revenue recognition is an accounting principle that outlines when (and how) businesses record revenue. It focuses on when it's earned (rather than when payment is received) to ensure accurate financial reporting. While...