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I think an important point to consider is whether your product is an intermediate good or a final good. Intermediate goods used as inputs for other software pro
by mcmcmc 2y ago
I think an important point to consider is whether your product is an intermediate good or a final good. Intermediate goods used as inputs for other software products are a good bet for usage based pricing because it’s easier for your customers to integrate that into their own cost and pricing calculations. Whereas a final good where your customer is the end user, it might make more sense to bill a flat rate subscription so you can charge based on the end user’s perceived value of the product. Tiered subscriptions with usage caps are a good hybrid model since you can ensure your cost of service doesn’t outpace your revenue