In Depth

Usage-based? Hybrid? Tiered? Which pricing model is right for you? — Stripe’s Jeanne DeWitt Grosser

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Jan 27, 2022
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INSIGHT

Usage-Based Pricing Alignment

  • Usage-based pricing tightly aligns customer value and company revenue.
  • It requires customer success for the company to thrive.
ADVICE

Pivot to Usage-Based Pricing

  • Consider pivoting to usage-based pricing if customer value scales with usage.
  • Evaluate how core functionality ties to user actions versus outcomes.
ANECDOTE

Stripe Billing Pricing Challenge

  • Stripe faced challenges pricing Billing due to the market's preference for subscription models.
  • Selling two products with different pricing models can be difficult.
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