Monetization Models & Metering

What's in this category

• Monetization model: How you charge for your product or service
• Pricing metric: The unit of charge (per seat, per transaction, etc.)
• Value metric: Metrics that scale with delivered value
• Continuous vs. banded metrics: Graduated vs. flat pricing structures
• Credit-based metrics: Token and credit-based pricing models
• Consumption-based pricing: Pay-as-you-use pricing strategies
• Usage-based pricing (PAYG): Per-unit consumption models
• Per-user/per-seat: Pricing based on number of users or seats
• Capability-based pricing: Flat access to capabilities
• Outcome/performance-based pricing: Success-based pricing structures
• Subscription model: Monthly, annual, and multi-year strategies
• Freemium model: Free tier with premium upgrades
• Tariffs & market mechanisms: Linear, 2-part, 3-part, block pricing; auctions; pay-what-you-want; tie-ins (razor & blades)

How to use this

This category covers the fundamental principles that should guide all pricing decisions. Start here if you're new to pricing strategy or need to establish a solid foundation before diving into specific tactics. These concepts apply whether you're a startup finding product-market fit or an enterprise optimizing complex pricing structures.

Coming Next

Related categories