Usage-based billing
Metered and consumption pricing
What it is
Usage-based billing charges customers for what they use: API calls, active seats, compute, messages. It needs a metering pipeline that records usage accurately, rates it against each customer's contract, and turns it into invoices. Enterprise contracts often combine usage with a committed minimum, prepaid credits and overage rates.
Buyers want to pay in line with value, and their finance teams want to forecast. Both depend on meters you can trust and invoices you can explain.
What it takes
About 8–14 engineer-weeks to build in-house, or 3–6 using Metronome, Orb, Lago or Stripe Billing.
Answer these first
- Product: What is the one value metric we charge on?
- Engineering: Can we rebuild any invoice line from raw usage events?
- Engineering: What happens if usage events are late, duplicated or lost?
- Finance: How do commits, credits and overages show up on invoices and in revenue?
- Sales: What will we let sales discount or customise?
- Support: How does a customer see their current usage?
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