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Usage-Based Pricing for the Creator Economy
Creator Economy Platforms Pricing Models
Creator economy platforms work with a combination of two pricing models:
- Take rate — a percentage of creator income taken by the platform
- Subscription — monthly subscription for using the platform
Often the combination is based on multiple pricing tiers, with each tier defined as a different combination of these models.
The take rate especially is a significant pain point for the creators.
Creator economy platforms justify the take rate, usually by the discoverability provided by the platform, think YouTube.
Usage-Based Pricing Models
An excellent series of articles on usage-based pricing (UBP) by Rotem Shacham, defines UBP as:
UBP in SaaS, as its name suggests, is a type of pricing structure that is tied to actual usage. It’s a variable payment structure tied to the level of consumption and is usually agnostic to the number of users. UBP can be in pure form as a linear function of usage or as a tiered step function where the different tiers are tied to different usage levels.
Think about the difference between your gym membership, where you pay irrespective…
