Overages: The Overlooked Problem in Usage-based Pricing (and How to Fix It)

1 · a16z · Dec. 8, 2023, 4:32 p.m.
Summary
Introducing usage-based pricing requires a fundamental mindset shift away from securing cash up front and toward providing value so your customers consume more.  But too often, I see GTM leaders hit their customers with overages as a way to get those customers to commit to higher spends up front—which gives the vendor more predictable revenue......