Usage-based pricing has emerged as a pivotal approach for modern SaaS and AI monetization, driven by the need for flexible billing systems that manage real-time data, complex pricing structures, and global compliance. Nearly 39% of SaaS companies now primarily utilize this model, highlighting its increasing popularity and the risks of revenue loss, customer churn, or operational chaos if pricing is mishandled. To effectively implement usage-based pricing, companies can employ strategies such as defining clear usage metrics, offering hybrid pricing models, implementing progressive billing, using credit-based pricing for predictable consumption, enabling self-service and transparent invoicing, automating commitments and overage enforcement, and prioritizing developer experience with API-first integration. Platforms like Lago provide tools to facilitate these tactics, offering real-time metering, multi-currency support, and SOC 2 Type 2 compliance, thus ensuring that companies can align revenue with the value delivered while meeting customer expectations for flexibility and accuracy.