Definition
Fair use is a reasonable usage expectation for a plan, designed to prevent abuse and cost spikes.
Why it matters
Fair use policies protect margins and keep pricing predictable, especially for unlimited or flat-rate plans.
Pricing implications
If fair use is unclear, customers feel surprised by enforcement. Define thresholds and communicate them upfront.
Measurement tips
Track users who exceed fair use thresholds and review enforcement outcomes.
Checklist
- Define fair use limits per plan.
- Publish fair use policy on the pricing page.
- Provide alerts before enforcement.
- Offer upgrades for higher usage.
- Track enforcement impact on churn.
- Avoid vague or hidden fair use rules.
- Review fair use thresholds quarterly.
- Align fair use with cost drivers.