Usage-based pricing isn’t always best

by Chris Reuter Usage-based pricing Usage-based pricing has been the darling of SaaS founders since Twilio, Stripe, and Snowflake broke through in the 2010s by generating monumental wealth for them and value for their customers. Ever since, investors and operators alike have tried to shoehorn consumption pricing into their products. However, there are some pretty hard and fast rules where it can be used effectively. 🪧 PSA: I’ll use the term usage or consumption pricing interchangeably from here on out, deal with it. First, the setting I’m not sure you’ve heard, but I’m from Maine. Coupling this with my experiences at a little company called IBM…

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