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Pricing & Salesintermediate

Metered Billing

Definition

A pricing model where customers are charged based on how much they use, such as per email sent, per gigabyte stored, or per API call, rather than a flat fee.

Why it matters

It aligns cost with value, so light users pay less and heavy users pay more. This can lower the barrier to start while growing revenue as customers use you more.

Example

A founder running an SMS tool charges £0.04 per message sent. A small client pays a few pounds a month while a busy one pays hundreds, all on the same plan.

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