What is a usage-based subscription model?

Usage-Based

The usage-based model bills a variable amount at the end of the billing cycle. The variable amount is determined by usage measured over the billing cycle.

 

EXAMPLES

  • Phone Service: AT&T charges $30/month for 2GB and $15/additional 1 GB/month
  • Car Rental: Zipcar charges $7/month plus $7/hour of driving time
 

HOW TO SETUP THIS MODEL

The usage-based model is a usage-based add-on in a plan. You can define a "price per unit" or a "percentage of an amount". Once customers subscribe, usage is recorded through our API and rolled up into an invoice at each renewal.

Learn more about Usage-Based Billing.