Glossary · Revenue metrics
Usage-based pricing
Customers pay based on how much they consume — API calls, seats active, gigabytes, orders processed — instead of a flat subscription. Revenue can grow with customer success without constant renegotiation.
Related: Monthly recurring revenue (MRR) · Annual recurring revenue (ARR) · Bookings vs revenue · Lifetime value (LTV)
A bit more nuance▾
- Revenue becomes lumpier; forecasting needs usage models, not just seat counts.
- Pairs well with cloud infrastructure and developer tools.
Go deeper▾
Discussion questions▾
- What usage metric best tracks customer value?
- How would a usage spike or drop change your hiring plan?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.