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

customer lifetime value saas

Subscription Management

A Guide to Customer Lifetime Value in SaaS: Definition, Metrics, and Strategies

Congratulations, your software as a service (SaaS) company just landed a deal with one of the most sought-after businesses in the industry. Before the celebrations begin, do you know the value this...
SaaS usage based pricing

Billing & Monetization

SaaS Usage-Based Pricing Explained

Worth over $257 billion in 2022, the software as a service (SaaS) market is expected to reach a whopping $1.3 trillion by 2030. This unprecedented growth can largely be attributed to this...
monthly recurring revenue

Billing & Monetization

Mastering Monthly Recurring Revenue: A Comprehensive Guide

Monthly recurring revenue (MRR) is the money you make every month from customers purchasing your products or services. This is the amount you can rely on receiving regularly. It is a key...
consumption based pricing model

Billing & Monetization

A Guide to Consumption-Based Pricing: Pros, Cons & Best Practices

The next evolution of pricing models is transforming how companies bill for products and services. Known as consumption-based pricing, this model charges customers based on their actual usage rather than a fixed...
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...
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...
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...
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...
what is usage based billing

Usage-Based Billing

What is Usage-Based Billing?

With so many different billing models available, it’s not uncommon for us to hear the question: what is usage-based billing? Simply put, usage-based billing allows users to pay only for what they...
what is cac

Billing & Monetization

A Guide to Customer Acquisition Cost (CAC) for SaaS

Acronyms are everywhere in the business world, but what is CAC? Like other industries, customer acquisition costs (CAC) for software-as-a-service (SaaS) companies refers to the money spent to convert prospects into buyers...
subscription management

Billing & Monetization

What is Subscription Management?

Sometimes used interchangeably, ‘subscription management’ and ‘recurring billing’ are complementary, with each having a distinct meaning and purpose. Take the analogy of a bat and ball. Each are separate objects with different...