Definition
Usage-Based Pricing
A pricing model where charges are based on actual consumption (tokens, API calls, compute time) rather than flat subscription fees.
Worked example
Charging $0.10 per 1,000 API calls instead of a flat $50/month subscription. Revenue scales with customer usage.
Related
- Pricing Intelligence→ (how Bear Lumen applies this)
- Customer Margin
- Cost-to-Serve
- Profit per Customer
- All definitions