Practice vocabulary for SaaS pricing architecture: metered billing, entitlement services, feature flags, usage thresholds, and overage billing.
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A billing model where customers are charged based on how much they actually use (e.g., API calls, seats, storage) rather than a flat fee is called:
The metered billing tracks usage per tenant — usage data is collected continuously and aggregated at billing time. Stripe Billing and Lago are popular tools for this.
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The internal service that stores which features and limits each pricing plan is allowed to access is called:
The plan configuration is stored in the entitlement service — entitlement services (like LaunchDarkly Entitlements or custom) answer 'Can tenant X do Y?' at runtime.
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The mechanism used to turn product features on or off per pricing plan without deploying new code is called:
Feature flags control what each plan can access — the feature flag is checked against the tenant's plan at runtime, enabling per-plan features without branching the codebase.
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When a tenant's usage reaches a predefined level that triggers a billing action, this is called:
The usage threshold triggers a billing event — for example, when API calls exceed 10,000/month, a 'tier upgrade needed' or 'overage charge' event fires.
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When a tenant exceeds their plan's included usage and is charged for the additional amount at the end of the billing period, this is called:
The overage is billed at the end of the month — overage billing lets tenants exceed their plan temporarily while ensuring the platform is compensated for the additional usage.