The true cost of consumption-based pricing: Why MAU models fall short and how to optimize for customers
Consumption-based pricing has become a popular model for SaaS and PaaS businesses, allowing customers to pay only for what they use. Pioneers like Slack and AWS have successfully adopted this approach, offering flexibility and reducing waste. However, not all consumption-based models are created equal. The Monthly Active Users (MAU) model, while appealing in its simplicity, often leads to inefficiencies and unexpected costs.