A Usage-Based Pricing (UBP) Strategy, also known as pay-as-you-go pricing, charges customers based on how much they actually use a product or service. Instead of fixed monthly fees, this model aligns pricing with value delivered, making it especially attractive to startups or companies with fluctuating usage needs.
In B2B SaaS, UBP can reduce barriers to entry, encourage adoption, and scale revenue alongside customer growth. However, it also requires careful metering, clear communication of pricing metrics, and proactive monitoring to avoid unexpected bills or churn.
Example:
A data analytics SaaS platform charges €0.10 per API call. A small business making 1,000 calls per month pays €100, while an enterprise making 20,000 calls pays €2,000 — both paying proportionally to their usage.