This article explains hybrid pricing models that combine subscription stability with usage-based flexibility, catering to both finance and growth teams. It outlines various models for individuals and teams, along with key considerations for choosing the right approach. Best practices for implementing these models are also discussed.

This article outlines various pricing models for SaaS products, including usage-based, outcome-based, seat-based, and hybrid approaches. Each model is explained with its key benefits and considerations, helping you determine which aligns best with your business needs. It also offers guidance on experimentation and iteration in pricing strategies.

Pricing strategies in SaaS are evolving due to the integration of AI technologies, requiring companies to adopt usage-based and hybrid models to manage costs effectively. Insights from industry leaders reveal that pricing is increasingly viewed as a core business system, necessitating a shift from traditional billing frameworks to more dynamic and transparent structures to address customer anxieties and foster adoption.

Choosing the right billing models is crucial for product-led growth (PLG) in SaaS companies, especially in a usage-based pricing environment. Effective billing strategies must balance customer flexibility with safeguards against fraud and revenue loss, utilizing real-time alerting to enhance user experience and operational control. Metronome offers a comprehensive billing platform to support these needs, helping businesses scale while maintaining customer trust and satisfaction.