Moving Beyond Fixed Pricing Through Usage-Led Subscriptions

InnovationMoving Beyond Fixed Pricing Through Usage-Led SubscriptionsByKashif Saleem,Forbes Councils Member.for Forbes Technology CouncilCOUNCIL POSTExpertise from Forbes Councils members, operated under license. Opinions expressed are those of the author. | Membership (fee-based)May 19, 2026, 08:30am EDTKashif Saleem is the Founder and CEO of SubscriptionFlow, an AI-native billing engine built to optimize recurring revenue operations. gettySubscriptions have traditionally been associated with revenue predictability. Conventional subscriptions follow the fixed-rate billing model, charging the same amount to every user on the same plan. This gives businesses the financial stability they need through consistent income and stable growth forecasts.However, subscription products are increasingly becoming more diverse and dynamic. SaaS businesses are finding out that their products don’t fit the traditional fixed-fee model. In this scenario, usage-based billing often seems like the better option, leading many founders to question whether they should stick with subscriptions or switch to usage-based billing entirely. ​In light of this dilemma, more organizations are moving forward with usage-led subscriptions. Rather than needing two separate pricing models for subscription and usage-based billing, businesses are merging these models to create subscription experiences that are shaped by usage.The False Choice: Subscription Versus UsageIt's not uncommon for founders to think they need to choose between predictable income (subscriptions) and flexibility (usage-based billing). But customers care more about fair prices and good value as opposed to the pricing model being used. ​If businesses force one pricing model over the other, they can risk overcharging their low-usage customers or undercharging the ones with high usage. Customers want both predictability and flexibility, not one or the other. ​Assuming all customers use your product the same way may hold for physical...