Introducing Metronome

Feb 1, 2022
 • 
0 MIN READ
Gold share tray icon
Kevin Liu & Scott Woody
Founders
Get updates into your inbox
Sample Metronome billing dashboard
Share

We’re delighted to introduce Metronome, billing infrastructure that helps companies launch, iterate, and scale their usage-based business models. We’ve spent the last two years building it, and we can’t wait to share our work with you.

At Metronome, we believe that usage-based models are critical to the future of software. They bring flexibility and expressiveness to pricing and better alignment with customers. Unfortunately, today’s rigid billing systems already struggle to keep up with simple pricing models, let alone complex usage-based models rooted in vast amounts of data. As a result, usage-based billing—and its benefits—have remained inaccessible and difficult to adopt.

We spoke with hundreds of companies that wanted to change their pricing after being inspired by the success of organizations like Snowflake, Twilio, and AWS. Unfortunately, many of those companies realized that they couldn’t afford the immense resources required to build and maintain flexible and reliable billing infrastructure at scale. Instead, they had no choice but to deal with rigid systems that actively hampered growth while still requiring heavy staffing and manual intervention.

We founded Metronome to close the gap of effort required for world-class billing.

We’re proud that Andreessen Horowitz, General Catalyst, and founders and operators from leading usage-based companies like Snowflake, Databricks, HashiCorp, Confluent, Plaid, and Twilio Segment, believe in our mission and participated in our Seed and Series A. We’re also thrilled to welcome Martin Casado, a successful founder and one of the preeminent investors in Silicon Valley, as a new addition to our board. Our $30 million Series A, which brings our total amount raised to over $35 million, ensures our independence and gives us the resources we need to build an enduring company.

But we’re even more proud that fast-growing companies like Cockroach Labs, Starburst, Cribl, and Truework have trusted us to power their business models. Metronome helps them effortlessly scale their businesses and frees their teams to focus on their most valuable opportunities.

At Metronome, we’re committed to building the best-in-class billing platform for software businesses. If you’re curious and want to learn more about what that looks like, we’ve written a more detailed blog post explaining that in depth. And if our mission resonates with you and you’re interested in joining our incredible team or having a conversation with us, please let us know. We’d love to hear from you.

Company Industry Outcome-Based Pricing Model Key Metrics for Pricing Notable Features
Salesforce (Agentforce) CRM / AI Customer Service

$2 per conversation handled by Agentforce (AI agent)

A conversation is defined as when a customer sends at least one message or selects at least one menu option or choice other than the End Chat button within a 24-hour period.

Number of support conversations handled by the AI agent

First major CRM to adopt a "semi"outcome-based pricing for AI; aligns cost with actual support volumes (clear ROI)

Addresses inefficiencies of idle licenses by charging only when value (a handled conversation) is delivered

Intercom (Fin AI) Customer Support Software

$0.99 per successful resolution by "Fin" AI chatbot - clients pay only when the bot successfully resolves a customer query

Fees accrue based on AI-solved issues

Count of support conversations resolved by the AI agent

Early adopter of AI outcome-based pricing in 2023

Lowers adoption risk by charging for resolved queries instead of a flat rate; combines usage- and value-based pricing to tie cost directly to support effectiveness.

Zendesk (AI Answer Bot) Customer Support

Per successful AI chatbot-handled resolution

No charge if the bot fails and a human must step in

Number of customer issues or tickets auto-resolved by the bot

Aimed at cost-conscious customers wary of paying for unproven AI

Aligns price with realized automation benefit; part of a broader industry shift from per-agent pricing to value-delivered pricing in support

Chargeflow Fintech (Chargeback Management)

Charges a fraction of recovered funds on chargebacks

Example: ~25% fee per successful chargeback recovery

No fees for chargebacks lost

Alert service charges $39 per prevented chargeback

Value/count of chargebacks recovered (disputes won) and chargebacks prevented (for prevention alerts)

4× ROI guarantee on recoveries

No contracts or monthly fees

Revenue comes only from successful outcomes; pricing directly aligns with merchant's regained revenue, meaning Chargeflow only profits when the client does (win-win model)

Riskified*

(source: https://www.chargeflow.io/blog/riskified-vs-forter)

E-commerce Fraud Prevention

remain fraud-free

PAYGO, 0.4% per transaction

Only charges for transactions it approves that

Number or value of approved transactions without fraud (i.e. successfully processed legitimate sales).

Provider shares financial risk of fraud with clients; pricing tied to outcome of increased safe sales

Incentivizes vendor to maintain high accuracy (they only profit when fraud is stopped)

Foster continuous improvement in their fraud-detection algorithms

Subscribe

Keep up with the latest in
pricing and packaging