Why does usage-based pricing work for developers?

Striking the right balance between free and paid elements in software for developers is crucial for business growth, as demonstrated by ngrok's transition to a usage-based pricing model. The company's previous pricing and packaging did not align well with the needs of its growing user base, especially as more developers sought to use ngrok in production environments. By introducing a pay-as-you-go plan, ngrok now charges based on monthly active endpoints, allowing users to only pay for what they actively use. This approach aligns with the preferences of developers who favor consumption-based payments for infrastructure software, as it reflects the value they receive from the product. This pricing shift is seen as a step forward in enabling users, including large enterprises, to efficiently leverage ngrok's capabilities beyond development and testing.

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