The first factor I would look at is the market you're targeting. What type of similar products are they using and what type of pricing models are they used to?

The first factor I would look at is the market you're targeting. What type of similar products are they using and what type of pricing models are they used to? I know how you feel about getting the 'ripped off' feeling from tiered pricing. I think as developers we're getting used to the AWS model of paying exactly what you get. But at the same time, you might be in a market where customers might think that in a PAYG model they're being nickel-and-dimed for every little thing. It all depends on their expectations. So in the end I'd figure out what your customers are accustomed to. I'd also read, if you haven't yet, Patrick's feedback on Tarsnap's PAYG model: http://www.kalzumeus.com/2014/04/03/fantasy-tarsnap/ http://www.kalzumeus.com/2014/04/03/fantasy-tarsnap/ He brings up some good points I hadn't considered.