What is usage-based billing? Benefits and examples

Features
Billing Management

Quotes

Billing

Expenses

Projects

Payments

Product Catalog
Advanced Subscription Management

Trial Management

Customer Lifecycle

Customer Portal

Proration

Metered Billing

Hosted Payment Pages

Dunning Management

Pricing Models
Unified Business Efficiency

Customization and Automation

Reporting and Analytics

Integrations

Mobile
See all features
Access billing anywhere, anytime

Stay in control of your finances and simplify your billing operations, even while you're on the go.
Pricing
Customers
Solutions
By Industry
FEATURED PAGE

Size doesn't define capabilities
A pocket-fit mobile solution that doesn't compromise on its advanced capabilities. Learn More
Resources
Resources
- Help Docs
- FAQs
- API Documentation
- Forum
- Billing Academy
- What's New
- Webinars
BILLING ACADEMY

Explore Now
FEATURED ARTICLE

What is Customer Lifetime Value (CLV) -
Definition, Formula, Calculation with Examples Learn More
Contact Us

What is usage-based billing?

Usage-based billing—also known as metered billing—is a flexible billing model that charges customers based on their consumption of a particular product or service.

Unlike flat-rate pricing, usage billing ensures that customers pay for what they use, providing a fair and scalable solution for both the provider and the customer.

Billing Software Dashboard | Zoho BIlling

How usage-based billing works with Zoho Billing

Price

Establish the pricing structure for your product or service to align with your customers' usage patterns.
Define

Set up specific metrics that your customers will be billed on, whether it's data usage, hours logged, or any other measurable service.
Monitor

Track customer usage in real time, capturing every interaction and consumption detail.
Invoice

Calculate the total usage per billing period to determine the amount owed and generate invoices reflecting the metered consumption.
Collect

Charge customers based on usage using payment methods like credit cards, bank transfers, and digital wallets.

Implement usage-based pricing methods

With Zoho Billing, you can implement a variety of usage billing approaches to monetize your services effectively, ensuring accurate and scalable pricing for your customers.

Pay-as-you-go pricing

Pricing methods - Pay-as-you-go | Zoho Billing

Charge customers based on their exact usage. This flexible model adapts to varying consumption patterns, ideal for services where usage can fluctuate significantly.

Tiered pricing

Offer multiple pricing tiers based on usage levels. Customers move to higher tiers as their consumption increases, providing scalable options that grow with their needs. For instance, the first 50 units might have a different price compared to the next 50 units.

Volume pricing

Charge customers based on the total usage at the end of the billing cycle. This method rewards higher usage with cost-effective pricing, suitable for services like cloud storage.

Package pricing

Bundle various services or usage limits into packages. Customers pay a set fee for a package that includes specific usage or features, simplifying billing and enhancing customer value.

Overage pricing

Set usage limits within subscription plans and bill for any usage beyond these limits. This approach is effective for managing additional consumption in services like data plans.

Refine your usage-based billing process with Zoho Billing

Revolutionize how you handle usage-based charges. Enjoy automated invoicing, flexible pricing, and utilize powerful analytics to streamline your financial operations.

Manage receivables

Track usage and generate accurate invoices to get paid faster | Zoho Billing

Generate accurate invoices based on usage, reducing manual effort. Manage receivables with automated payment tracking and reminders.

Manage predefined meter charges

Easy setup your metered billing system to track additional usage charges Zoho Billing

Quickly configure your offerings, subscription plans, and per-unit charges. Zoho Billing simplifies the process by accommodating all predefined meter charges.

Access detailed usage reports

Leverage advanced business analytics to drive growth | Zoho Billing

Leverage robust reports to analyze usage billing patterns and revenue streams. Make data-driven decisions with real-time insights.

INTEGRATIONS

Integrate seamlessly

Connect Zoho Billing with other apps for consistent data flow and accurate usage-based billing.

Why choose Zoho Billing for usage based billing?

Scale seamlessly

Expand your business with Zoho Billing, designed to handle increasing transactions and complex usage-based billing needs.

Bill accurately

Set up usage-based pricing to ensure that customers are charged for their consumption and enhance transparency.

Empower customers

Provide a self-service portal where customers can access their usage and invoices. This improves their trust in the consumption-based billing process.

Who can benefit from usage-based billing?

Manage billing for your consumer-based IoT business | Zoho Billing

SaaS

SaaS companies can implement usage-based billing to align charges with actual service use, ensuring fair pricing and satisfaction.
Learn more

Simplify IIoT billing with the best billing software | Zoho Billing

OTT platforms

For OTT platforms that charge users based on content consumption, billing per film or episode instead of a flat monthly fee.
Learn more

Streamline billing for your Health-tech business | Zoho Billing

Utility services

Utility providers utilize usage-based billing to charge customers for their resources usage, ensuring fair pricing and resource conservation.
Learn more

Bill your customers based on the usage of utilities and energy with Zoho Billing | Zoho Billing

Fleet management

Organizations managing fleets can use usage-based billing to charge for vehicle usage, such as mileage or fuel consumption.
Learn more

Have Questions?

Contact our support team for a personalized demo and discover how our recurring billing software can transform your business.

Get in touch with us!

Billing Management

Advanced Subscription Management

Unified Business Efficiency

By Industry

Resources

Optimize your revenue with usage-based billing