{"author_name":"The Metrics Brothers","author_url":"https://art19.com/shows/themetricsbrothers/episodes/12a50e2a-26ca-42cc-8bda-5f68395c8702","description":"<p>On this episode, Dave \"CAC\" Kellogg and Ray \"Growth\" Rike discuss in detail how Usage-Based Pricing (UBP)&nbsp;&nbsp;impacts the calculation of Customer Acquisition Cost and it's efficiency derivatives including CAC Ratio and CAC Payback Period.</p><p>They discuss the three primary different types of Usage-Based Pricing Models including:</p><ul><li>Pure usage-based or consumption-based pricing with no minimum commitments</li><li>Minimum commitment agreement that includes up to #x units and then overage $/unit over the minimum</li><li>Annual Subscription agreement to the platform and a $/unit of usage in addition to the annual subscription</li></ul><p><br></p><p>Each of the above models can impact what is consider Annual Recurring Revenue (ARR), Variable Recurrring Revenue (VRR) and/or pure variable revenue - and that will accordingly impact the CAC efficiency metric calculation methodology.</p><p>If you love the nuances and details of SaaS Metric and how emerging GTM models impact traditional metrics calculations - this episode is for you!</p>","html":"<iframe src=\"https://art19.com/shows/themetricsbrothers/episodes/12a50e2a-26ca-42cc-8bda-5f68395c8702/embed\" style=\"width: 720px; height: 200px; border: 0 none;\" width=\"720\" height=\"200\" scrolling=\"no\" sandbox=\"allow-scripts allow-popups allow-popups-to-escape-sandbox\"></iframe>","provider_name":"ART19","provider_url":"https://art19.com","title":"Usage-Based Pricing and CAC - The calculation impact is significant","type":"rich","version":"1.0","width":720,"height":200}