Use pay-as-you-go pricing in markets dominated by subscriptions to lower friction and differentiate
When competitors force customers into recurring subscriptions, offering pay-as-you-go credits creates significant differentiation. Users buy credits, consume as needed, top up when depleted - no monthly commitment. For B2B, shared credit pool dramatically simplifies procurement and reduces costs.
When to use
Markets with expensive subscriptions where customer usage is intermittent or unpredictable. When B2B customers have variable usage patterns.
Don't do this
Applying to markets where subscription creates better retention. When credit management creates more friction than subscriptions.
3 Founders Who Did This
Competitors charge $30+/month subscriptions. Yaphone offers pay-as-you-go credits - buy credits, use central balance, top up as needed. For businesses, shared credit pool eliminates per-seat costs
Used pay-as-you-go credit pricing in market dominated by subscriptions, prominently displayed 'no subscription' banner
Offered pay-as-you-go credits alongside subscriptions to capture users who did not want a commitment, with credits at higher unit price