Hybrid pricing models, which integrate subscriptions with usage-based billing, have become essential for SaaS and AI companies to balance predictable revenue with the flexibility customers desire, thus enhancing customer retention and capturing greater value from heavy users. This approach allows businesses to serve a diverse range of customer segments, optimize revenue by securing stable recurring income alongside gains from high-usage clients, and reduce churn by offering scalable options. Companies like Salesforce and Slack exemplify this strategy, combining subscription tiers with usage-based add-ons to tailor offerings to different customer needs. Implementing such models requires robust billing infrastructure capable of real-time metering, automated invoicing, and comprehensive analytics to manage complex billing events and support rapid product innovation. Platforms like Lago facilitate these requirements with features such as real-time event processing, flexible pricing engines, and developer-friendly APIs, enabling companies to efficiently handle the technical complexities of hybrid pricing and drive sustainable growth.