Credit-Based Pricing Model
When to use credits, how to price them, and how to avoid bill shock.
Quick checklist
- One credit maps to a clear unit of value.
- Credits map to a predictable unit cost.
- Tiering reduces bill shock for heavy users.
- Expiration rules are simple and explicit.
- Buyers can estimate credits from usage.
Step-by-step
- Define what one credit represents in product terms.
- Calculate unit cost per credit at p50 and p90.
- Add tiers or bundles that smooth usage spikes.
- Draft credit expiration and rollover rules.
- Validate billing and tracking accuracy.
What to watch
- Credits that hide real unit costs.
- Confusing mappings between credits and usage.
- Expiration rules that feel punitive.
Common mistakes
- Pricing credits without cost validation.
- Letting credits cover unrelated features.
- Mixing credits with another pricing metric.
