Traditional Recurring Subscription
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
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
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: WorkloadsWorkloads
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.