---
title: Traditional Recurring Subscription
slug: traditional-recurring-subscription
docTags: 
createdAt: 2026-05-01T18:46:59.201Z
---

This guide explains how to implement a **subscription-only pricing model**.

In this model, customers pay a fixed recurring fee for access to your product. There is no usage-based billing or overages.

## The Scenario

You are building a SaaS product that charges customers based on **seats**.

Your pricing model:

- $500 per month
- Includes up to 10 seats

There are no overage charges in this version. The subscription fee covers access to the product.

## Core Concept

:::BlockQuote
Fixed Monthly Fee  
→ Access to Product  
→ No usage-based charges
:::

This is the simplest pricing model.

## Step 1: Define What the Subscription Represents

Even though billing is not usage-based, it is still important to define what the customer is paying for.

In this example:

- The subscription includes **10 seats**

You may still track seat usage internally, but it is not required for billing in this model.

## Step 2: Create a Pricing Plan

### Where to Configure

- Go to **Pricing**
- Create a new pricing plan

### Configure

- **Name**: Team Plan
- **Billing Period**: Monthly

## Step 3: Add a Subscription Rate

### Where to Configure

- Add a **Subscription** rate (previously called flat rate)

### Configure

- **Label**: Team Plan Subscription
- **Rate**: $500

### Billing Options

- Select **Beginning of billing period**

This ensures the subscription is charged at the start of each cycle.

## Step 4: Assign the Plan to a Customer

### Where to Configure

- Go to **Customers**
- Select a customer
- Assign the pricing plan

Once assigned, the customer will be billed the subscription amount each billing period.

## Example Outcome

A customer is subscribed for one full billing period.

### Billing Calculation

:::BlockQuote
Monthly Subscription = $500
:::

There are no additional charges, regardless of how the product is used.

## Optional: Tracking Seats

Even though seats are not used for billing in this example, you may still want to track them.

You can do this by:

- Creating a seats meter
- Sending usage events when seats are added or removed

This allows you to:

- Monitor usage
- Enforce limits externally
- Prepare for future pricing changes

## When to Use This Model

Subscription-only pricing is best when:

- Usage is predictable
- You want simple, predictable billing
- You are early in product development
- You do not need granular usage-based pricing

## Understanding Cost Behind the Subscription

Even if you are not billing based on usage, your system is still generating cost.

You can (and should) meter the underlying activity that drives your product, such as:

- API calls
- LLM tokens
- Background processing jobs
- Infrastructure usage

This data is not used for billing in this model, but it is critical for:

- Understanding the true cost of your plans
- Measuring margins
- Identifying inefficiencies
- Making pricing decisions over time

These usage signals can be attributed to internal systems and analyzed separately from billing.

For internal cost tracking and attribution, see:
[Workloads](docId\:XToRHVsoI2AOK1BZPwfDU)

## How This Can Evolve

Many products start with subscription-only pricing and later expand to:

- Subscription + overages
- Usage-based pricing
- Tiered pricing

See the hybrid subscription guide for adding included usage and overage billing.

This model provides simplicity and predictability, while still allowing you to understand the underlying cost structure of your product.