Knowledge

Pay-per-Use Software: Pay for What You Use Instead of Licenses

What Pay per Use means for software, how it differs from license and subscription models, and when usage-based billing is the better choice.

Pay-per-Use software bills according to actual consumption: you pay for phone calls handled, documents processed, or media created – not for licenses, user seats, or mere access. Everyone knows the principle from electricity: the connection doesn't cost you anything per person in the household; you pay for what runs through the meter.

Three Pricing Models Compared

Today, software is essentially sold in three ways:

• Purchase license: Pay once, use permanently. Sounds fair, but means a high upfront investment, often with additional update and maintenance costs.
• Subscription (per user/month): The dominant model. Predictable – but the fee applies regardless of usage: for the colleague who opens the tool twice a month just as much as for the power user. Across many tools, the familiar subscription stack builds up, debiting your account every month no matter what happens.
• Pay-per-Use: Costs only arise with actual usage. Cost-causation-based – those who use little, pay little.

None of the models is inherently "right." But they create different incentives – and suit different situations.

Where the Subscription Model Pinches

For small and medium-sized businesses, the per-user subscription has two structural weaknesses. First, it penalizes participation: every additional employee costs money, so occasional users don't get access – and end up working around the system. Second, it penalizes variety: every additional tool is another subscription, so useful software goes unpurchased or gets used through shared logins, which is neither clean nor secure. The result is often a company that pays for software hardly anyone uses – and doesn't use what would help many.

Where Pay-per-Use Has Its Strengths

• Fluctuating usage: Seasonal business, project peaks, quiet months – the costs breathe along.
• The whole team on board: When user accounts cost nothing, everyone can really get involved – even those who only need the system occasionally.
• Risk-free trial: Getting started costs no annual fee; what isn't used costs nothing.
• Honest incentives: The provider only earns money when their software actually does work – not from a forgotten subscription.

To be fair: with very high, constant usage, a flat-rate model can be cheaper. Anyone consuming the same large volume every month should run the numbers on both options.

What to Watch Out for with Pay-per-Use

1. Transparency before the action: You should see what something costs before it incurs costs.
2. Visible consumption: A balance visible at any time instead of a surprise at month's end.
3. No hidden fixed costs: "Pay-per-Use plus base fee plus minimum purchase" is a subscription with extra steps.

How webRichtung Implements It

The webRichtung platform is consistently built on Pay-per-Use: your account costs €0, every additional user in your company likewise, and there is no license fee per app – all modules are included in the account. You pay for actual consumption via a Credits balance: 1 Credit equals 1 euro net. You top up once or automatically weekly/monthly – this is not a subscription, but a convenience without obligation. And where larger amounts arise, such as media productions in studio, the platform shows the fixed Credit price before the start. How the model works in detail is explained in the documentation.

Markdown · Text