Which description best matches the pay-per-use revenue model?

Which description best matches the pay-per-use revenue model?

• A. Free basic version with upgrades.
• B. Restriction-based access with monthly license.
• C. Fixed annual fee for all users.
• D. Charges customers based on usage.

Answer: (D)

Pay-per-use means you charge customers according to how much they actually use the service. This pricing aligns cost with value received and scales with activity—more usage leads to higher charges, while light or no usage costs less. This approach is common for services where consumption can be measured, such as API calls, data transfer, or compute time. The phrasing that fits this model is: charges customers based on usage. The other descriptions describe different pricing approaches: freemium uses a free tier with optional paid upgrades, subscription with a fixed monthly license locks in access regardless of usage, and a fixed annual fee charges everyone the same regardless of how much they use.

Pay-per-use means you charge customers according to how much they actually use the service. This pricing aligns cost with value received and scales with activity—more usage leads to higher charges, while light or no usage costs less. This approach is common for services where consumption can be measured, such as API calls, data transfer, or compute time.

The phrasing that fits this model is: charges customers based on usage.

The other descriptions describe different pricing approaches: freemium uses a free tier with optional paid upgrades, subscription with a fixed monthly license locks in access regardless of usage, and a fixed annual fee charges everyone the same regardless of how much they use.