Why Event-based or MTU-based Pricing is Broken

1

RudderStack

At RudderStack, we believe in sharing ways to build quality customer data infrastructure. Sharing an open-source product is at the heart of what we do. We also offer a premium and paid tier for a hosted enterprise feature. This includes advantages such as SSO, high availability, and dedicated support. After team discussions and evaluations about the most effective pricing structure and the disadvantages of event-based or MTU-based pricing models, we concluded that applying a fixed platform fee for our customers was the best solution.

#Data Integration #Web Analytics #Business Intelligence 22 social mentions

2

Hacker News

For any company, the number of active users can change widely over time. Let’s say your marketing team runs a crazy campaign. You experience a massive spike in the number of users. Or imagine that your visitor traffic increased 100x because a blog you wrote went to the first page on HackerNews! In this case, the number of users arriving at your app/website becomes very unpredictable. You may receive a lot of visitors, but they may not be paid users. If RudderStack were to price its model per user, then customer’s costs would increase without any immediate value.

#Social Networks #Social News #Startups 498 social mentions