This is the answer. I worked on a product that started out as a fixed price and we were pretty successful. We switched to a pay as you go model, and it just ab

This is the answer. I worked on a product that started out as a fixed price and we were pretty successful. We switched to a pay as you go model, and it just about tanked the business, despite it being cheaper for most of our customers. We lost 90% of our customers within a few quarters. Its like you said: - Accounting greatly prefers fixed amounts for budgeting purposes - Pay as you go actually incentives people not to use your product to avoid being charged - Paying a fixed price for something encourages adoption since your company has already paid for it. Whereas, there is no pressure to adopt a pay as you go product since there is no cost to not using it. We ended up switching back to a fixed price model and actually drastically raised the price. We became much more successful after that.