Developer tools are essential in modern software engineering, but monetizing them effectively presents unique challenges compared to traditional SaaS products. Usage-based billing is emerging as a preferred model for monetizing DevTools due to its alignment with developer expectations and its capacity to scale with adoption, reflecting real business value. This model supports various pricing structures such as pay-as-you-go, usage-based tiers, and subscription plus overage, which cater to the diverse usage patterns of technical buyers who demand precision and transparency. Lago, an open-source billing platform, facilitates implementing usage-based billing by offering real-time usage metering, flexible pricing models, and automated invoicing, allowing DevTool companies to focus on product development without the complexities of building billing systems in-house. Best practices involve starting with a generous free tier, enhancing self-serve capabilities, avoiding hidden fees, and providing flexible billing options, ensuring that developer monetization strategies effectively align with how developers operate and scale their products.