Pay-As-You-Go Model

The Pay-As-You-Go Model is a pricing strategy where customers are charged based on their actual usage of the service rather than a fixed subscription fee. In SaaS, this model can include charges per transaction, data volume, or compute time.

This flexible pricing aligns costs with value received, appealing to customers who prefer not to commit to long-term contracts. It can lower the barrier to entry and attract a wider customer base.