Usage-based billing
Overview
Track usage and bill customers based on their consumption
Usage-based billing allows you to charge customers based on their actual usage of your product or service. This model is ideal for businesses that offer services where consumption can vary significantly between customers. This flexible model is ideal for SaaS companies, cloud services, and any business where usage can be easily measured.
How it works
The usage-based billing process typically involves the following steps:
- Create a meter: Setup a meter to track and aggregate usage data.
- Add meter to a plan: Associate the meter with a pricing plan to define how usage will be billed.
- Record usage: Your application sends usage events to the Billingrails.
- Usage aggregation: Billingrails aggregates the usage data over a specified period.
- Billing: At the end of the billing cycle, customers are billed based on their aggregated usage.
- Invoicing: Usage charges are added to customers' invoices for the billing period.