Per Seat or Per Use Pricing: A Framework for Evaluating the Right Strategy for Your Startup
Tomasz Tunguz
AUGUST 28, 2021
Madhavan provided an excellent framework for answering this question, in addition to a multitude of other insights. The platform fee establishes a stable relationship and the usage pricing enables the customer to scale up or down as a function of their traffic which might vary throughout the year. Segment is a good example of this.
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