Thoughts on consumption-based pricing VS subscriptions for SaaS?

1 points by carlod 3y ago ↗ HN

Founders, what do you prefer? A tool that offers consumption-based pricing (I.E. you spend what you used) VS the traditional subscription?

If it helps, specifically for transactional emails within SaaS products.

2 comments

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I always prefer subscriptions, unless the usage price would be pennies. Most usage pricing is a black box and that’s intimidating.

carlod 3y ago ↗

I agree! 'Intimidating' is a good word for it.

In our case pennies is in fact the case, just trying to understand if it scares away potential users.