Usage-based billing

Usage-based billing is a pricing model where customers pay for services based on how much they use, rather than a flat fee. This approach is common in utilities, telecoms, and cloud services. For example, if you use more electricity, your bill increases; if you use less, it decreases. This model allows customers to only pay for what they actually consume, making it more flexible and potentially cost-effective. It can also motivate users to manage their consumption more carefully, as expenses directly correlate with usage levels.