Back to Blog
Usage-Based Pricing
9 min read

Switch to Usage-Based Pricing 2025: Migration Guide

When to switch from subscription to usage-based pricing: signs, business case, and migration playbook. 12-18 month transition planning guide.

October 8, 2025By Alex Johnson

Many SaaS companies consider switching from subscription to usage-based pricing. Learn when the switch makes sense and how to execute it.

Signs You Should Consider UBP

High usage variance among customers, friction in sales cycles due to pricing, customers asking for usage-based options, and competitive pressure all signal potential for UBP.

Evaluating the Business Case

Model expected revenue under UBP, assess operational readiness, and evaluate customer impact. The business case should show clear benefits over current model.

Planning the Transition

Start with new customers, offer existing customers a choice, and set clear timelines. Provide tools for customers to estimate costs under the new model.

Execution Best Practices

Communicate early and often, provide cost predictability tools, and offer safety nets for the transition period. Monitor customer feedback closely.

Frequently Asked Questions

How long does the transition take?

Plan for 12-18 months to fully transition. New customer adoption is faster, but migrating existing customers requires patience.

What if some customers prefer subscription?

Continue offering subscription for those who want it. Having both options expands your market and lets customers choose what works for them.

Key Takeaways

Switching to UBP is a major undertaking but can unlock significant value. Plan carefully, execute patiently, and prioritize customer communication.

Transform Your Revenue Analytics

Get ML-powered insights for better business decisions

Related Articles

Usage-Based Pricing

Usage-Based Pricing Guide 2025: Metered Billing Implementation

Implement usage-based pricing: metered billing setup, consumption tracking, and UBP analytics. 67% of SaaS now use UBP - learn implementation best practices.

Usage-Based Pricing

Metered Billing Revenue Leakage 2025: Prevention & Audit Guide

Prevent metered billing revenue leakage (1-5% of revenue). Track usage accurately, reconcile billing, and audit usage-based pricing to capture 100% of revenue.

Usage-Based Pricing

Hybrid SaaS Pricing 2025: Subscription + Usage-Based Revenue

Implement hybrid pricing models: combine subscription MRR with usage-based revenue. Achieve 60-70% base + 30-40% usage split for optimal revenue growth.