Credit-Based Pricing

Credit-based pricing is the self-service version of pre-purchased commitments. Instead of negotiating terms with sales teams, customers can buy credits on-demand, top-up balances as needed, or opt for automatic top-ups. These credits are often flexible and redeemable across various features. This model is perceived as customer-friendly since it empowers users to control costs. However, in practice, customers reliant on mission-critical services may have little choice but to buy more credits when balances run low.

#What does this pricing model solve?

• Covers vendor upfront costs
• Facilitates organic account growth
• Aligns with PLG and self-service approaches
• Establishes hard spending limits for customers

#Why is this pricing model challenging?

• Running out of credits can cause outages
• Customers often struggle to forecast usage accurately