Why PLG Products Need a Usage-Based Billing Engine

Episode 36 of Product-Led Growth with Fexingo digs into usage-based billing—why it's becoming the default pricing model for modern SaaS, and what PLG teams must build to make it work. Lucas and Luna walk through the example of a fictional API company that switched from per-seat to consumption pricing, hitting 40% faster expansion revenue and a 15% lift in net dollar retention. They explore the technical requirements: real-time metering, credit management, and why the billing system must sit inside the product, not glued on later. The hosts also unpack the risks—bill shock, customer confusion, and margin erosion—and how smart nudges like pre-paid credits and usage alerts keep customers happy. If you're building a PLG product and wondering whether to move off flat-rate or per-seat pricing, this episode gives you the concrete trade-offs to consider. #ProductLedGrowth #UsageBasedPricing #SaaS #BillingEngine #PLGStrategy #SelfServeSoftware #ModernSaaS #Business #Technology #FexingoBusiness #BusinessPodcast #LucasAndLuna #Metering #ExpansionRevenue #NetDollarRetention #BillShock #PrePaidCredits #ConsumptionPricing Keep every episode free: buymeacoffee.com/fexingo