Pay-As-You-Go

Definitions

1. A pricing model where customers pay based on actual usage or consumption rather than committing to a large fixed upfront contract. It lowers entry friction but can make revenue forecasting less predictable.

   In plain English: A pricing model where you pay only for what you use.

   Example: "The API product switched to pay-as-you-go to reduce signup friction for developers."

Related Terms

• Freemium
• Fee Structure
• Loss Leader
• Metered Billing
• Annual Plan
• Billing Cycle
• Billing Platform
• Bundling
• No-Brainer Deal
• Surge Pricing