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Pricing models

Hybrid pricing

A fixed platform or seat fee combined with a usage component. The most common shape in modern SaaS.

Hybrid pricing combines a committed fixed fee with variable consumption. A platform fee plus API calls; a seat price plus storage; a monthly minimum plus overage.

It is popular because it splits the difference honestly: the fixed part gives both sides predictable revenue and predictable cost, and the variable part keeps price aligned to value as usage grows.

It is also the hardest to bill, because a single invoice now has to combine a recurring charge, a metered charge, prepaid credits drawn down, overage beyond commitment, and proration on the fixed part, all with consistent tax treatment.

Related terms

  • Usage-based pricing Charging by what the customer consumes rather than by a fixed subscription fee. Also called consumption or metered pricing.
  • Seat-based pricing Charging per user or per licence, the most common model in B2B software.
  • Prepaid credits A balance a customer buys up front and draws down as they consume, sometimes at a discount to pay-as-you-go.
  • Overage Usage beyond an included allowance or commitment, charged at a separate rate.