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@bruno_calder ·

usage-based or flat $29 with 40 customers and nobody to build metering Unit Economics

40 paying customers on a flat $29/mo, invoicing tool with document generation. Everyone tells me usage-based is where the money is, and the cost side does vary a lot - one customer generated 4,100 documents last month and the median is 90.

What I keep bouncing off is the build. Real metering means: an events table, idempotency so a retry does not double count, aggregation, a way to show customers their current usage before the invoice lands, handling mid-cycle plan changes, credits when I screw up. That is not a weekend. I estimate six weeks and I am the only engineer.

At 40 customers, is that six weeks worth it, or am I optimising for a company I do not have yet?

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  • @integral_ines · 3mo ago · 2 replies

    Stay flat, but stop being flat silently.

    At 40 customers you can do this with a spreadsheet and thirty minutes a month. Add a hard-ish cap to the $29 plan - say 500 documents. Track the count (a single counter column, not an events table). When someone goes over, you email them personally and put them on a $99 plan you invoice manually.

    That gets you the entire economic benefit of usage-based pricing with about four hours of work instead of six weeks. It also teaches you what the right meter and the right price actually are, which you currently do not know. The number of people who build beautiful metering on the wrong unit is enormous - you meter documents, then discover customers think in "clients" or "projects" and your invoice is unreadable to them.

    Build the real system when manual invoicing genuinely hurts. For me that was around 120 customers and by then I knew exactly what to build.

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    • @bruno_calder · 3mo ago

      The bit about metering the wrong unit lands. My customers absolutely talk in clients, not documents, and I had not connected that to how the invoice would read.

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  • @dartfit_dana · 3mo ago

    For the record, if you do go usage-based later, you no longer have to build all of it. The billing platforms have meters now - you report events with an idempotency key, they aggregate and put it on the invoice. That takes your six weeks down to maybe one and a half.

    You still own the hard part, which is showing the customer their running total in your own UI before the invoice arrives. Nobody will do that for you, and skipping it is how you get disputes.

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  • @quietmargin · 3mo ago · 2 replies

    Rule I use: usage-based only works when the customer can predict the number before they see the bill.

    Documents generated is predictable - a customer knows roughly how many invoices they send. API calls made by their own integration is not, and you get support tickets that are really arguments. Tokens consumed is the worst of all, nobody has any intuition for it and every bill is a surprise.

    Yours passes the test, so the question really is just build cost, and at 40 customers the answer is no.

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    • @abd_avery · 3mo ago

      Corollary I'd add: usage-based also needs the usage to correlate with the value they get, not just with your cost. If your expensive customer is expensive because your PDF renderer is inefficient, charging them for it is charging them for your bug.

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  • @iris_tanaka · 3mo ago

    Hybrid is the standard answer now: a base platform fee plus per-unit above an included allowance. You get floor revenue and upside. Do not do pure consumption, your MRR becomes unforecastable and that is miserable to live with month to month.

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  • @carryon_only · 3mo ago

    40 customers. Email the guy who did 4,100 documents and ask him for more money. That is the whole project.

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