CDN Cost Pass-Through

Decide when to pass CDN costs to customers without hurting conversion.

Quick checklist

  • Separate CDN vs origin costs.
  • Set pass-through thresholds by tier.
  • Use a simple per-GB rate for clarity.
  • Add caps for extreme traffic.
  • Review CDN usage quarterly.

Step-by-step

  1. Calculate blended CDN cost per GB.
  2. Decide which tiers include CDN usage.
  3. Set overage rates for high usage.
  4. Add alerts before pass-through fees apply.
  5. Monitor churn after changes.

What to watch

  • Hidden CDN costs erode margin.
  • Overly complex pass-through harms conversion.
  • Regional egress rates can skew pricing.

Common mistakes

  • Mixing CDN and storage costs.
  • Passing costs without clear disclosure.
  • Ignoring cache hit rate changes.

Tools to use