Usage-Based Pricing Model

USAGE METRIC SELECTION

Metric Selection Framework

USAGE METRIC CRITERIA

CANDIDATE METRICS:
☐ API calls
☐ Data volume (GB)
☐ Compute time
☐ Active users
☐ Events/transactions
☐ Records/objects
☐ Messages sent

SELECTION CRITERIA:
           Metric A  Metric B  Metric C
Value aligned:  ___/5    ___/5    ___/5
Easy to track:  ___/5    ___/5    ___/5
Predictable:    ___/5    ___/5    ___/5
Hard to game:   ___/5    ___/5    ___/5
Scalable:       ___/5    ___/5    ___/5
Total:          ___/25   ___/25   ___/25

SELECTED METRIC: _______________
RATIONALE: _______________

Usage Model Options

Model	Structure	Best For
Pure usage	Pay for what you use	Low-volume, sporadic
Commit + overage	Base commit + overages	Predictable + upside
Tiered usage	Volume discounts at tiers	High-volume users
Hybrid	Platform + usage	Multiple value drivers

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RATE STRUCTURE

Usage Pricing Design

USAGE RATE STRUCTURE

MODEL: Commit + Overage

COMMIT TIERS:
Tier 1: _____ units/mo @ $_____ = $_____/mo
Tier 2: _____ units/mo @ $_____ = $_____/mo
Tier 3: _____ units/mo @ $_____ = $_____/mo
Enterprise: Custom

OVERAGE RATES:
0-20% over commit: $_____ /unit
20-50% over commit: $_____ /unit
50%+ over commit: $_____ /unit

PREDICTABILITY FEATURES:
☐ Spend caps available
☐ Usage alerts at X%
☐ Rollover credits
☐ Burst allowance
☐ Prepaid credits option

EXAMPLE CUSTOMER:
Commit: 10,000 units @ $0.10 = $1,000/mo
Actual usage: 12,000 units
Overage: 2,000 @ $0.12 = $240
Total: $1,240/mo

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