TLDR Founders · STRATEGIES & TACTICS

CREDITS PRICING SUCKS AND USERS HATE IT

getlago.com4 min read

Summary from the TLDR Founders newsletter

Credits-based pricing often mixes the worst of subscriptions and pay-as-you-go: customers pre-pay for usage they might never need, while the real cost remains fuzzy. A story about sinking $60k into unused credits drives the point home. The alternative? Progressive billing that charges incrementally as actual usage grows. It's simpler, trust-building, and prevents nasty surprises—especially critical in AI, DevTools, and infrastructure services.