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FinAtlas
Archetypeunverified

Usage / consumption

Revenue metered to actual consumption; billing is variable and partly outside customer commitment.

What changes about the finance work: Forecastability is poor; revenue and COGS both move with usage

Relationships pointing at this node.

changes these tasks

2

The task exists in this business archetype but behaves differently. The note is the point of the edge: it must say how it differs, not merely that it does.

  • Price is set per unit of consumption, so a packaging change moves revenue and cost of revenue at the same time and in the same direction. Elasticity has to be estimated on usage volume rather than on seat count, and a price cut can raise gross profit while lowering gross margin.

  • Revenue is metered after the fact and is not contractually committed, so there is no bookings-to-revenue waterfall to build. The forecast is a consumption model with a credit burn-down, and its accuracy degrades sharply beyond one quarter because customers can simply stop using the product without churning.