Usage-based pricing

Usage-based pricing is a pricing strategy where customers pay based on how much they use a product or service, rather than a flat fee. This model is commonly seen in utilities like electricity or water, where the cost varies according to consumption. In software, for example, users might pay based on the number of features they use or the amount of data processed. This approach allows customers to only pay for what they actually use, making it flexible and potentially more affordable for those with varying needs or consumption patterns.