Usage-based metering

Usage-based billing, also called metering, charges customers for what they actually use. The tool counts events, for example messages sent, hours used or files stored, and turns the total into an invoice line. Stripe Billing, Chargebee, Recurly and Polar are examples of tools that support it. A customer who uses little pays little, and a heavy user pays more.

A flat price can feel unfair to small users and leaves money on the table with large ones. Usage pricing ties what you earn to the value customers get. It matters for products where use varies a lot, such as software with an API or a cloud service. It matters less for simple subscriptions, where predictable pricing is easier to sell. Your own system also has to send accurate usage figures, or invoices will be wrong.

• How is usage sent to the tool, and can events be corrected afterwards?
• Can you combine a base fee with usage, or use tiers and included amounts?
• Can customers see their running usage before the invoice arrives?
• How does the tool handle disputes over a usage figure?