A pay-as-you-go (PAYG) pricing model is a usage-based pricing structure where customers are charged only for the value they use, eliminating waste and upfront costs. This approach aligns costs with real-time usage, making it more scalable and flexible than traditional subscription models. By tracking measurable metrics tied to customer usage, companies can automate billing and generate invoices based on preset pricing rules, ensuring customers only pay for what they truly need. PAYG pricing has several benefits, including increased scalability, improved customer satisfaction through fair and transparent pricing, and reduced waste. To implement a PAYG model, businesses must identify measurable usage metrics, set pricing logic, choose a billing platform, test and iterate their pricing strategy, and educate their customers on the value of this pricing approach. Several SaaS companies, such as Amazon Web Services, MongoDB, Clarifai, and Notion, have successfully adopted PAYG models to offer flexibility, scalability, and cost-efficiency for both customers and businesses.