Glossary definition

What is hybrid billing?

“Hybrid” is defined as anything derived from heterogeneous sources. Hybrid billing similarly combines two or more subscription or billing methods.

By offering hybrid billing to their customers, companies with subscription business models gain flexibility in meeting their customers’ needs such as temporarily purchasing more usage. Under a product-lead growth (PLG) model, they may start with lower usage amounts and adjust the usage and billing thresholds as customers, competition, and other factors may dictate.

There is also the possibility of rolling up many small contracts and disparate users into a larger site license which is typically sales-assisted with higher ACV and more complex revenue recognition.

A hybrid subscription billing model can also combine these PLG and sales assisted recurring billing models. At this level, the subscription billing solution needs to accommodate these combinations throughout the entire quote to cash process, as they are very different. One requires no- to low-touch product selection, billing, and payment. The other is more complex and requires Sales to create quotes with multiple line items that may be bundled, impacting revenue recognition.

Sage Intacct streamlines and simplifies hybrid billing models, providing SaaS companies needed elasticity to meet fast changing market and customer demands.

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