Pricing models

Pricing models are the backbone of how products generate revenue. The most common approaches include one-time purchases, subscriptions, usage-based pricing, and hybrid models.

Each serves different customer needs and business goals:

• One-time purchases work well for products with clear, immediate value like software licenses or physical goods
• Subscriptions create predictable revenue streams and work best for services that deliver ongoing value
• Usage-based models charge customers for what they consume, making them ideal for cloud services or utilities

The right model depends on your product type, customer behavior, and market expectations. For example, B2B software often uses annual subscriptions while consumer apps might prefer monthly plans. Understanding these fundamentals helps you pick a model that aligns value delivery with revenue generation.