Usage-based billing is becoming a prevalent monetization strategy among SaaS, AI, and infrastructure companies, with around 39% of SaaS companies now adopting this model, as it aligns costs with the actual value delivered, particularly in AI services. Successful implementation requires more than consumption tracking; it necessitates strategic metering, pricing, and customer communication. Key strategies include selecting value-based metrics that align with customer outcomes, designing flexible pricing tiers to cater to different usage patterns, and building robust metering and billing infrastructure for scalability and accuracy. Transparency is crucial, with real-time usage dashboards and proactive communication enhancing customer confidence. Continuous analysis and optimization of the billing model are essential to adapt to customer behavior and market demands, with companies like Lago offering platforms that facilitate high-frequency event processing and flexible pricing rule configurations. While usage-based billing offers significant advantages, it also poses challenges such as technical complexity and revenue predictability, which can be mitigated by investing in reliable infrastructure and providing customer education. Ultimately, a well-implemented usage-based billing system can drive sustainable growth by maintaining a balance between business objectives and customer experience.