# Hybrid Billing

> Hybrid billing combines multiple pricing models into a single customer invoice, such as a fixed subscription fee plus variable usage charges.

- **URL**: https://dodopayments.com/glossary/hybrid-billing

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## What is Hybrid Billing?

Hybrid billing combines multiple pricing models into a single customer invoice, such as a fixed subscription fee plus variable usage charges. This approach allows businesses to secure a base revenue while also capturing upside from increased customer activity.

### Why It Matters

- It offers the stability of recurring revenue alongside the growth potential of usage-based pricing.

- It allows for more flexible pricing strategies that can adapt to different customer needs.

- It helps cover the fixed costs of providing a service while billing for the variable costs of heavy usage.

- It provides a path for customers to start with a low base fee and pay more only as they find more value.