Consumption-based pricing lets startups align costs with customer value by charging for usage instead of subscriptions. It reduces friction in sales, supports land-and-expand strategies, and encourages adoption without big commitments. Success requires picking clear value metrics, modernizing sales compensation, rethinking revenue forecasting, ensuring transparency in spend, and leveraging unified data for real-time insights. Snowflake helps enable this model with scalable data infrastructure, usage tracking, and secure sharing. Though harder to implement, consumption pricing differentiates startups, drives customer trust, and creates new growth opportunities.

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