Monetization Models & Metering

Comprehensive monetization strategies including subscription models, usage-based pricing, value metrics, and advanced pricing mechanisms.

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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
  • 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
  • Price Architecture: Strategic price setting, positioning, geographic variations, and architectural decisions that maximize revenue while maintaining simplicity
  • Behavioral & Psychological Pricing: Psychological pricing principles including anchoring, decoy effects, fairness perceptions, and behavioral economics to optimize customer decisions
  • Global pricing & billing ops: Global pricing strategies including currency management, tax compliance, channel partnerships, and billing operations across international markets

How to use this

This category helps you choose the pricing model that best aligns with how your customers derive value from your product. Whether you're implementing your first pricing model or evolving from one model to another, these concepts will guide your decision-making.

Related categories

Core Philosophies & Strategy

Understanding Value & Customers

Customer Research & Pricing Experiments

Unit Economics & Pricing Performance

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This content is available for reuse with attribution. When referencing or republishing, please credit Dr. Sarah Zou and link back to the original source.

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Licensed under Creative Commons Attribution 4.0 International. You are free to share and adapt this material, provided you give appropriate credit.

Dr. Sarah Zou

EconNova Consulting

PhD economist specializing in pricing and monetization strategy for tech startups. Helping startups and scale-ups optimize their pricing for maximum growth.

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