Griff Parry, co-founder of Meter, discusses the industry shift toward hybrid and usage-based billing models.
Prediction Not checkable as stated
Parry: SaaS will not transition entirely to pure usage-based pricing
“I definitely don't think it's the case that everything is going to be usage based and everything is going to be sort of an extreme variation of usage based.”
Insight
Parry: Do not build services for industries you do not know intimately
“If I did it all over again, I wouldn't have Built a service for an industry that I didn't know intimately myself”
Insight
Parry: SKU complexity and custom pricing cause billing headaches, not volume
“They could be trying to cope with a high degree of price complexity that might not have a huge amount to do with the volume of usage ingest. So, you know, it might be whatever, like a 1,000,010 million, a hundred million. It doesn't matter. But what the reason…”
Insight
Parry: Billing infrastructure requires heavy capital due to high MVP bar
“We're building critical infrastructure for significant companies, and that requires quite a lot In comparison, quite a lot of capital. So, you know, the minimum MVP to do this kind of stuff, which, you know, touches dollars, you know, it drives billing is quit…”
Disclosure
Parry: Sift uses API pricing with minimum commitments and overages
“Sift is a good example. So if you know Sift, they used to be called Sift Sciences. They're a great business, and they're doing fraud detection for online retail effectively, and the core of the core metric that they charge against is, is based around APIs. So …”
Disclosure
m3ter targets companies with $50M+ ARR for usage-based billing
“Simplistically, I would say revenue, so it's fifty million dollar ARR and above.”