Usage-based pricing (UBP) is on the rise — 61% of SaaS companies used this model in some form in 2022, VC firm OpenView found out.
UBP consists of charging based on how the service or product is consumed, not on how many people are using it; that would be the seat-based approach.
But as often in pricing, things are more blurred, and many companies are actually using blended models. Think of Zapier, for example: It offers subscription tiers that include consumption as one of its main variables.
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