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Combined subscription and usage

You can combine recurring charges with usage-based pricing to create hybrid pricing plans that offer both predictable base pricing and flexible usage-based charges.

Anchor to Combining pricing modelsCombining pricing models

You can combine recurring charges with usage-based pricing in several ways:

Anchor to Base fee + usageBase fee + usage

Charge a monthly subscription fee plus usage-based charges. For example, $29/month base fee plus $0.01 per SMS sent. This model provides predictable baseline revenue while allowing costs to scale with merchant usage.

Anchor to Usage onlyUsage only

Set the recurring fee to $0 and charge only for usage. This model is ideal for apps where merchants want to pay only for what they use, with no commitment.

Anchor to Tiered plans with usageTiered plans with usage

Offer different base tiers with varying usage rates or included usage allowances. For example:

  • Basic: $19/month + $0.02 per message
  • Pro: $49/month + $0.01 per message
  • Enterprise: $99/month + $0.005 per message

This encourages merchants to upgrade to higher tiers for better usage rates.

Anchor to Billing cycle considerationsBilling cycle considerations

When combining pricing models, monthly recurring and usage charges are billed monthly.

Important

Usage-based pricing requires a monthly billing cycle. You can't combine usage-based pricing with yearly plans.

Anchor to Best practicesBest practices

  1. Communicate clearly: Make sure merchants understand both the base fee and potential usage charges before subscribing
  2. Provide usage visibility: Give merchants a way to monitor their usage within your app
  3. Set reasonable rates: Price usage charges to align with the value merchants receive
  4. Consider included allowances: Including some usage in the base fee can simplify pricing and reduce billing anxiety

Anchor to Next stepsNext steps

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