Pay-per-Use Software: Pay for What You Use Instead of Licenses
What pay-per-use means for software, how it differs from licensing and subscription models, and when usage-based billing is the better choice.
Pay-per-use software bills based on actual consumption: you pay for calls handled, documents processed, or media created – not for licenses, user seats, or mere access. Everyone understands the principle from electricity: the connection costs you nothing per person in the household; you pay for what goes through the meter.
Three billing models compared
Software today is sold essentially in three ways:
- Purchase license: Pay once, use forever. Sounds fair, but means high upfront investment, plus often update and maintenance costs.
- Subscription (per user/month): The dominant model. Predictable – but the fee is charged 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, charging every month no matter what happens.
- Pay-per-use: Costs arise only with actual usage. Cost-justified – who uses little, pays little.
None of these models is inherently “right.” But they create different incentives – and fit different situations.
Where the subscription model pinches
For small and mid-sized companies, the per-user subscription has two structural weaknesses. First, it penalizes inclusion: every additional employee costs money, so occasional users don’t get access – and work around the system. Second, it penalizes diversity: every additional tool is another subscription, so useful software stays unbought or gets used via shared logins, which is neither clean nor secure. The result is often a company paying for software hardly anyone uses – and not using what would help many.
Where pay-per-use has its strengths
- Variable usage: Seasonal business, project peaks, quiet months – costs move with the tide.
- No base fee: The account incurs no recurring access charge.
- Limited experimentation: Upon self-registration you get 7.5 Credits as a test budget.
- Honest incentives: The provider only earns when their software actually does work – not on forgotten subscriptions.
To be fair: at very high, constant usage, a flat-rate model can be cheaper. If you consume the same large volume every month, you should calculate both options.
What to watch for with pay-per-use
- Transparency before the action: You should see what something costs before it incurs a charge.
- Visible consumption: An account balance visible at all times instead of surprise at month-end.
- 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 built consistently on pay-per-use: your account is free and has no base fee. You pay for work completed via Credits: 1 Credit equals 1 euro net. Upon self-registration you receive 7.5 Credits as a test budget. How the model works in detail is explained in the documentation.
Frequently asked questions
What does pay-per-use mean for software?
Pay-per-use means: you pay for actual consumption – such as calls handled, documents processed, or media created – instead of a fixed license or subscription fee per user per month. Use little, pay little; use much, pay accordingly.
What is the difference between pay-per-use and a subscription?
A subscription buys access: fixed price per user per month, regardless of usage. Pay-per-use buys performance: costs only arise when something is actually consumed. Subscriptions are more predictable; pay-per-use is more cost-justified.
Who benefits most from pay-per-use?
Especially small teams and variable usage: no fixed costs in quiet months, no license fee for occasional users, no subscription stack across multiple tools. At very high, constant usage, flat-rate models can be cheaper – it pays to do the math.
How does pay-per-use work at webRichtung?
The account is free and has no base fee. You pay for consumption via Credits: 1 Credit equals 1 euro net. Upon self-registration, you receive 7.5 Credits as a test budget.
Are costs predictable with pay-per-use?
Yes, if the model is transparent: prices per action should be clear beforehand, and consumption should remain traceable.