Consumption-based pricing aligns what customers pay with the value they receive, making it attractive for customers with variable or unpredictable usage. It lowers the barrier to entry and naturally scales revenue as customers grow.

Example: A SaaS email platform charges $0.001 per email sent. A startup sending 10,000 emails/month pays $10, while an enterprise sending 50 million emails/month pays $50,000, with pricing scaling directly with usage and business growth.