3 ms·

Is flat rate the best way to describe it when there's actually a few different tiers and each one has hard coded rate limits?

• jamwil 6mo ago
  Within each tier, each marginal token is an expense with no marginal revenue to offset. So yes. The platonic ideal for any subscription business model is zero usage.
  • weird-eye-issue 6mo ago
    I run an AI subscription business and we have our pricing set in a way that we make an acceptable profit even if all users were to max out their given usage
    • jamwil 6mo ago
      Of course. My point is that your profit still decreases as you approach max usage, ceteris parabis. It may be acceptable but it is less. Your costs are variable and your revenue is fixed (at least on a unit basis).
      • weird-eye-issue 6mo ago
        No, not for us because we have a lot of different tiers and so as their usage increases they buy bigger and bigger plans.