2021 State of Usage-Based Pricing

Software buying has evolved and SaaS companies are increasingly moving to a usage-based pricing model. What makes it so attractive? Usage models correspond with faster net expansion and continued growth at scale. 

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We set out to understand adoption over time and the profiles of companies implementing this pricing model. I along with fellow OpenView Partner Sanjiv Kalevar surveyed nearly 600 SaaS companies to find out how they priced their products in 2021.

In this report, we investigate: 

• Whether usage-based pricing is being adopted across the broader SaaS market 
• How companies utilizing this pricing model perform relative to their subscription peers
• Examples of when this model works and when it doesn’t work as well
• How traditional subscription companies can quickly get started with a usage model

Find out why leading SaaS companies like Snowflake, Twilio, and Cypress selected usage-based pricing and how it helped them outpace their peers.