> ## Documentation Index
> Fetch the complete documentation index at: https://alguna.com/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Pricing Models

> Learn about supported pricing models

# Pricing Models

Alguna supports flexible pricing models to match various business needs—from simple flat fees to complex usage-based structures. Configure these in the dashboard when creating or editing products.

***

## Fixed Pricing

A consistent, unchanging fee charged on a recurring basis, regardless of usage.

**Best for:** Platform access fees, base subscriptions, support tiers

**Real-world examples:**

* **Slack** charges \$8.75/user/month for Pro, regardless of message volume
* **Notion** charges \$10/user/month for Plus, with no usage limits
* **Linear** charges \$8/user/month flat rate for project management

**Configure in dashboard:**

1. Navigate to **Products → New Product**
2. Set **Fee Type** to **Fixed**
3. Enter the price per unit
4. Set billing frequency (monthly, annual, etc.)

***

## Per-Unit Pricing

Charge a fixed price for each unit consumed, billed based on actual usage.

**Best for:** Seat-based pricing, API calls, storage, data transfer

**Real-world examples:**

* **AWS S3** charges \$0.023/GB/month for storage
* **SendGrid** charges \$0.00025 per email beyond included volume
* **Snowflake** charges per compute credit consumed

**Configure in dashboard:**

1. Navigate to **Products → New Product**
2. Set **Fee Type** to **Metered**
3. Select your billable metric
4. Set **Pricing Model** to **Per Unit**
5. Enter the price per unit

***

## Tiered Pricing

All units are priced at the rate of the tier the customer lands in based on total volume.

**Best for:** Encouraging volume commitments, rewarding larger customers

**Real-world examples:**

* **Intercom** pricing where reaching a higher tier means ALL conversations are billed at that tier's rate
* **Mailchimp** where your total contacts determine the price per contact for everyone

**How it works:**

| Tier | Volume  | Price per Unit |
| ---- | ------- | -------------- |
| 1    | 0-100   | \$0.15         |
| 2    | 101-500 | \$0.10         |
| 3    | 501+    | \$0.05         |

If a customer uses 250 units, they're in Tier 2, so all 250 units are charged at $0.10 = **$25.00\*\*

**Configure in dashboard:**

1. Navigate to **Products → New Product**
2. Set **Fee Type** to **Metered** or **Fixed**
3. Set **Pricing Model** to **Tiered**
4. Define your tier ranges and prices

***

## Graduated Tiered Pricing

Units are priced progressively—first units at one rate, next units at another rate, and so on.

**Best for:** Usage-based pricing where you want customers to pay more for initial usage

**Real-world examples:**

* **Stripe** billing where first $1M is 0.5%, next $4M is 0.4%, above \$5M is 0.3%
* **Twilio** where first 1M messages cost more than subsequent messages
* **Datadog** log management with progressive pricing

**How it works:**

| Tier | Volume     | Price per Unit |
| ---- | ---------- | -------------- |
| 1    | First 100  | \$0.15         |
| 2    | Next 400   | \$0.10         |
| 3    | Beyond 500 | \$0.05         |

If a customer uses 250 units:

* First 100 @ $0.15 = $15.00
* Next 150 @ $0.10 = $15.00
* **Total = \$30.00**

**Configure in dashboard:**

1. Navigate to **Products → New Product**
2. Set **Pricing Model** to **Graduated Tiered**
3. Define tier boundaries and per-tier rates

***

## Prepaid with Overages

Customer pays upfront for a bundle of units, with additional charges for usage beyond the prepaid amount.

**Best for:** Committed usage packages, API bundles, messaging packs

**Real-world examples:**

* **Twilio** prepaid messaging packages with overage fees
* **OpenAI** prepaid token bundles with pay-as-you-go overages
* **Plaid** API call packages with per-call overage pricing

**How it works:**

* Prepaid: 1,000 API calls for \$50/month
* Overage: \$0.08 per call beyond 1,000

If customer uses 1,500 calls:

* Prepaid: \$50.00
* Overage: 500 × $0.08 = $40.00
* **Total = \$90.00**

**Configure in dashboard:**

1. Navigate to **Products → New Product**
2. Set **Pricing Model** to **Prepaid with Overages**
3. Set prepaid quantity and price
4. Set overage price per unit

***

## Percentage-Based Pricing

Charge a percentage of transaction value or revenue processed.

**Best for:** Payment processing, marketplace fees, revenue share models

**Real-world examples:**

* **Stripe** charges 2.9% + \$0.30 per transaction
* **Shopify Payments** charges 2.4% + \$0.30 per transaction
* **Gumroad** charges 10% of transaction value

**How it works:**

* Rate: 2.5% + \$0.25 per transaction
* Customer processes \$10,000 in payments
* Fee: ($10,000 × 2.5%) + (100 transactions × $0.25) = $250 + $25 = **\$275**

**Configure in dashboard:**

1. Navigate to **Products → New Product**
2. Set **Pricing Model** to **Volume Percentage**
3. Enter percentage rate and optional fixed fee per transaction

***

## Graduated Percentage Pricing

Different percentage rates apply based on volume tiers, calculated progressively.

**Best for:** High-volume transaction processing with volume discounts

**Real-world examples:**

* **Stripe** Billing with volume discounts for larger businesses
* **Adyen** payment processing with graduated rates
* **Marqeta** card issuing with tiered processing fees

**How it works:**

| Tier | Volume       | Rate |
| ---- | ------------ | ---- |
| 1    | First \$100K | 2.5% |
| 2    | Next \$400K  | 2.0% |
| 3    | Above \$500K | 1.5% |

If customer processes \$250,000:

* First $100K @ 2.5% = $2,500
* Next $150K @ 2.0% = $3,000
* **Total = \$5,500**

**Configure in dashboard:**

1. Navigate to **Products → New Product**
2. Set **Pricing Model** to **Graduated Percentage**
3. Define tier thresholds and percentage rates

***

## Tiered Percentage Pricing

A single percentage rate applies to all volume based on which tier the total falls into.

**Best for:** Simple volume-based percentage pricing

**How it works:**

| Tier | Volume      | Rate |
| ---- | ----------- | ---- |
| 1    | 0-\$100K    | 2.5% |
| 2    | $100K-$500K | 2.0% |
| 3    | \$500K+     | 1.5% |

If customer processes \$250,000, they're in Tier 2:

* All $250K @ 2.0% = **$5,000\*\*

**Configure in dashboard:**

1. Navigate to **Products → New Product**
2. Set **Pricing Model** to **Tiered Percentage**
3. Define tier thresholds and rates

***

## Choosing the Right Model

| Use Case                 | Recommended Model            |
| ------------------------ | ---------------------------- |
| Platform access fee      | Fixed                        |
| Per-seat licensing       | Fixed (per unit)             |
| API calls, data transfer | Per-Unit or Graduated Tiered |
| Encouraging volume       | Tiered or Graduated Tiered   |
| Usage bundles            | Prepaid with Overages        |
| Payment processing       | Percentage-Based             |
| High-volume discounts    | Graduated Percentage         |

***

## Next Steps

<CardGroup cols={2}>
  <Card title="Configure Products" icon="box" href="/pricing/configure-products">
    Create products with your chosen pricing model.
  </Card>

  <Card title="Create Plans" icon="clipboard-list" href="/pricing/plans">
    Bundle products into subscription plans.
  </Card>
</CardGroup>
