icon Blog

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...

Blog Categories:

All Posts

arpu

Accounts Receivable

Average Revenue Per User (ARPU): Definition and How to Calculate

A key performance indicator (KPI), average revenue per user (ARPU) measures the revenue generated per user/customer over a specific period of time. This metric has many uses, from helping organizations assess how...
accrued revenue

Accounts Receivable

Accrued Revenue: Definition, Examples, and How to Record It

Accrued revenue is a cornerstone of accrual accounting, playing a vital role in accurately reflecting a company's financial performance. For businesses operating in dynamic industries, understanding the concept is essential for aligning...
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,...
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...
asc 606 revenue recognition

Revenue Recognition

Understanding ASC 606 Revenue Recognition & the 5 Steps of Revenue Recognition

ASC 606 revenue recognition directs organizations to recognize revenue when the promised goods or services are transferred to the customer. The amount of revenue recognized should equal the total consideration an organization...
value-based pricing

Billing & Monetization

What Is Value-Based Pricing?

We’re all familiar with the value-based pricing example – think Mercedes, Gucci, Christian Louboutin, Rolex, and Louis Vuitton. While typically associated with luxury items, that’s not always the case. For instance, Starbucks,...
consolidated billing

Accounts Receivable

What Is Consolidated Billing? Best Practices & Benefits Uncovered

Popular among software-as-a-service (SaaS) organizations, billing consolidation is a methodology that merges multiple transactions or subscriptions into a single invoice. This approach simplifies the process by consolidating multiple financial transactions. It’s also...

Billing & Monetization

Understanding Customer Acquisition Cost in Business and How to Calculate It

Are you starting a new business or launching a new product? Then you should know what your customer acquisition cost (CAC) is. Simply put, the definition of CAC is the cost of...
what is revenue management

Billing & Monetization

What is Revenue Management?

Also referred to as yield management, revenue management can be described in extremely simplistic terms (selling the right product, to the right customer, at the right price, through the right channel) or...
what is enterprise billing

Billing & Monetization

What is Enterprise Billing: An Overview

Enterprise billing refers to an advanced and sophisticated system designed to meet the complexities of large-scale businesses across all billing processes like invoicing, payment processing, dunning, collections, revenue recognition, taxation, credits and...
annual recurring revenue

Billing & Monetization

Annual Recurring Revenue: Your Comprehensive Guide

Annual recurring revenue (ARR) refers to the normalized annual revenue that a company expects to receive from its subscribers in return for products and services provided. In other words, it’s the predictable...