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The Rise Of ‘Pay For What You Use' Models [Forbes]
Last microsoft corporation earnings: 4/29 04:06 pm
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US:NASDAQ Investor Relations: microsoft.com/en-us/investor
How we pay for products and services is evolving. While subscriptions are still popular, a new way to pay is gaining ground: 'pay for what you use.' Many companies, including Lemonade and Spotify, are adopting this shift, creating flexible, fair, and transparent payment models. The traditional subscription model charges a flat fee. You pay the same amount whether you use a service or not. This model is easy for businesses but not always fair to customers. Many people end up paying for more than they use. Here are some companies leading the way in 'pay for what you use' models: Lemonade : Changes the game for homeowners and renters insurance with dynamic pricing. Uses AI to assess individual risk and sets prices accordingly, making insurance more transparent and affordable. ClassPass : Lets customers pay for fitness classes and wellness services as they go. This model offers flexibility without a long-term commitment. AWS and Microsoft Azure : Offer cloud services on a pay-as-y
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