Metered billing is gaining traction as a dynamic pricing model that ties costs directly to a customer's actual usage of a product or service, offering a fair and transparent approach beneficial to both providers and consumers. This model, favored by SaaS companies, AI providers, and telecommunications, involves tracking customer consumption, establishing billing cycles, and determining rates for specific units of usage, such as API calls or data storage. It allows businesses to optimize resource use, scale efficiently with demand, and achieve long-term revenue growth, while offering customers lower entry barriers, greater expense control, and transparency through real-time data access. Implementing metered billing requires robust infrastructure for accurate usage tracking, a clear communication strategy to build customer trust, and a secure system compliant with data protection regulations. Despite challenges like managing billing complexity and addressing customer resistance, metered billing provides scalable, flexible, and equitable pricing solutions that can lead to sustainable growth, supported by platforms like Lago, which facilitate the integration and management of complex billing needs.