# Product Brief — Usage-Based Billing

**Owner** L. Braun · **Status** In review · **Target** Q3 2026

## Problem

Mid-market customers churn at 2.3× the rate of enterprise,
and exit interviews cite one cause: paying for seats they
don't use. Our flat tiers punish exactly the accounts we
want to grow into enterprise.

## Users

- Ops leads at 50–500 person companies (buyer)
- Finance approvers who audit per-seat spend quarterly

## Proposal

Meter renders per workspace and bill monthly in arrears, with
a spend cap the customer sets. Tiers remain for enterprise.

## Success metrics

| Metric                   | Now   | Target |
| ------------------------ | ----- | ------ |
| Mid-market logo churn    | 4.6%  | ≤3.0%  |
| Expansion revenue share  | 18%   | 28%    |
| Billing support tickets  | 41/mo | ≤45/mo |

## Out of scope

Prepaid credits, reseller billing, currency support beyond
USD/EUR — all tracked for a later phase.

## Open questions

1. Cap behavior: hard stop or overage alert?
2. Does the free tier keep monthly reset or move to credits?