Article · 6 min read
Usage-based Pricing: Growth and Adoption in a Changing Landscape
Arijit Bose · Chargebee Free Intermediate
Tracks adoption of usage-based pricing from 45 percent to 63 percent of SaaS companies and, more usefully, flags data mediation as the thing that breaks when you switch. Includes investor views on moving early, around five million dollars ARR, rather than after scale.
- 63 percent of SaaS businesses already run some form of usage-based pricing.
- 46 percent are running or testing usage-based plans alongside a subscription, not instead of one.
- Make the switch around 5M in revenue rather than 100M, when there is less internal resistance.
- 64 percent named data mediation as the critical requirement, and 85 percent are still iterating on their model.