Usage Based Pricing Done Right(usagebased.org)
usagebased.org
Usage Based Pricing Done Right
https://www.usagebased.org
3 comments
Hey Manoj, creator of the project here.
Both transactional and usage-based subscription are usage based models because the metric you are billed on is tied to usage. In one, there's no minimum cost (think twilio) and in another there's tiers of usage (hence subscription) - like Zapier where you can only buy Zaps in specified blocks. So if you want to use 433 zaps, you will still be billed for 500. So it's kinda like a subscription.
I will try to make this more explicit.
Both transactional and usage-based subscription are usage based models because the metric you are billed on is tied to usage. In one, there's no minimum cost (think twilio) and in another there's tiers of usage (hence subscription) - like Zapier where you can only buy Zaps in specified blocks. So if you want to use 433 zaps, you will still be billed for 500. So it's kinda like a subscription.
I will try to make this more explicit.
Got it
How does that make usage based pricing better than transactional? Is it because the commitment in UB pricing will reduce the unit price comparatively?