Do you only think of fixed recurring billing when someone mentions subscription billing solutions? You're not alone. Although fixed recurring subscription billing—think Netflix—has gained popularity (for a good reason, but that’s for another post), SaaS subscription companies offer different subscription products and services, including usage-based subscription billing.
Are usage-based and subscription billing the same?
Yes and no. A usage-based subscription—sometimes referred to as a pay-as-you-go subscription—is just that: Customers receive recurring bills according to their service usage within the billing period. The more they use a service, the more they pay; thus, usage-based billing can be a type of subscription.
If your business is currently wading through the waters of subscription billing solutions and not sure where to start or what to look for, check out these best practices from our financial experts.