Metered Billing

Definitions

1. A billing model where customers are charged based on measured usage such as API calls, seats consumed, storage, or compute time rather than only through flat subscriptions. Metered billing aligns pricing with consumption but requires reliable usage tracking.

   In plain English: Charging customers based on how much they actually use.

   Example: "The shift to metered billing made enterprise procurement harder but product value clearer."

Related Terms

• Annual Plan
• Outcome-Based Pricing
• Pay-As-You-Go
• Pricing Model
• Razor and Blade Model
• Seat-Based Pricing
• Stacking
• Subscription Model
• Under-Monetized
• Value Engineering
• Wrap Rate