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New Resource Designed to Educate SaaS, Cloud, and Fintech Leaders on the Commercial Aspects of Consumption-Based Pricing Models

WASHINGTON, December 14, 2022 – Ordway, the finance platform for innovative business models, today released an online guide for usage-based pricing.  The guide was developed over the past year, based upon an exhaustive analysis of real-world pricing strategies at several hundred SaaS and cloud companies.  Its content was authored by Ordway executives with several decades of experience working at SaaS, cloud, and fintech companies with consumption-based pricing models.

The new guide explains the value proposition of usage-based pricing and some of the challenges it introduces to customers.  Dozens of real-world examples from the SaaS and cloud space are used to illustrate how pricing strategies vary in different sub-sectors of the technology space.  It also explains the issues providers should  consider before adoption, highlighting specific challenges for finance, sales, product, engineering, and customer success teams.

The seven-chapter guide includes detailed explanations of the key concepts behind usage-based pricing including:

“There is a tremendous amount of interest in usage-based pricing, but everyone is using different definitions and terminology to describe how it works,” said Steve Keifer, chief marketing officer at Ordway.  “Several good articles have been published, but they are each narrowly focused on the way a single company has implemented usage-based pricing when, in fact, there are trillions of different ways it can be implemented. Our hope with this guide to provide a more comprehensive approach to better educate the market.”

Ordway offers usage-based billing software for rapidly growing SaaS and cloud companies.  Using Ordway’s APIs, monetization engineers can stream metered consumption data captured in their products to Ordway for rating and invoicing.  Ordway’s usage-based billing application supports a broad set of discounting models including volume and tiered pricing, contract structures such as prepaid and monthly minimums, and billable quantity models including usage pooling and high water mark.  Outputs of the billing engine can be fed into the revenue recognition application to generate accounting under ASC 606 as well as into the reporting module to calculate ARR, net retention, and other investor metrics.


Ordway: Ordway is a billing and revenue automation platform that is specifically designed for today’s innovative, technology-centric business models. With Ordway you can automate billing, revenue recognition, and investor KPIs for recurring revenue from subscriptions or usage-based pricing models.