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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

Include setup fees | Zoho Billing

Price

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

Create special price lists | Zoho Billing

Define

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

Supports multi-currency | Zoho Billing

Monitor

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

Create special price lists | Zoho Billing

Invoice

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

Multiple payment options | Zoho Billing

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

Tiered pricing

Volume pricing

Package pricing

Overage pricing


Pay-as-you-go pricing

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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

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Pricing methods - Tiered Pricing | Zoho Billing

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

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Pricing methods - Volume Pricing | Zoho Billing

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

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Pricing methods - Package Pricing | Zoho Billing

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

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Pricing methods - Overage Pricing | Zoho Billing

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

Manage predefined meter charges

Access detailed usage reports


Manage receivables

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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

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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

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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.

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!
Message from CEO

Zoho is a software company that ships 45+ products globally. Operating on a subscription pricing model for more than 20 years has given us the opportunity to face and overcome the practical pain points of subscription businesses. Let us solve your subscription billing challenges, together.

Sridhar Vembu

CEO, Zoho Corporation

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