Tech companies are increasingly moving away from static pricing models to more dynamic approaches like usage-based, credit-based, and hybrid billing to keep pace with modern software needs, particularly in AI and SaaS industries. This shift allows companies to align pricing more closely with actual customer usage, thereby enhancing revenue growth, customer satisfaction, and reducing churn. Usage-based billing, where customers are charged based on their actual consumption, is particularly effective for businesses with fluctuating usage patterns, such as AI and API-first companies. Credit-based models offer predictability by allowing customers to purchase credits in advance, which can be redeemed for various services, while hybrid models combine elements of subscription and usage-based pricing to adapt to customer growth. The implementation of these billing models is facilitated by platforms like Lago, which provide real-time metering and automated invoicing, allowing for rapid adaptation and scaling. Modern billing strategies have been shown to improve key metrics like customer acquisition cost payback and net dollar retention, making flexible billing infrastructure a competitive advantage for tech companies.