Source: https://www.revvly.ai/glossary/usage-based-pricing

[Glossary](https://www.revvly.ai/glossary)

# Usage-based pricing

Also: metered billing, consumption pricing

**Usage-based pricing charges customers according to how much of a product they consume, such as API calls, gigabytes or transactions, instead of a flat fee. Revenue scales with customer value, but it is less predictable than seat or plan pricing, so most businesses combine usage with a committed base.**

## How to read it

It needs reliable metering, a clear billing timing rule (in advance or in arrears) and customer-visible usage so invoices are never a surprise. Forecasting works from commitments plus a modelled usage range.

## In Revvly

- [Docs: guides metered usage](https://www.revvly.ai/docs/guides/metered-usage)
- [Docs: guides pricing models](https://www.revvly.ai/docs/guides/pricing-models)

## Further reading

- [Usage-based pricing without the billing chaos.](https://www.revvly.ai/blog/usage-based-pricing)
- [Implementing usage-based pricing: what it actually takes without an engineering team](https://www.revvly.ai/blog/implementing-usage-based-pricing)

## Related terms

- [Hybrid pricing](https://www.revvly.ai/glossary/hybrid-pricing)
- [Tiered pricing](https://www.revvly.ai/glossary/tiered-pricing)
- [Seat-based pricing](https://www.revvly.ai/glossary/seat-based-pricing)

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Orchestrate the flow of revenue.

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