Overage

What is Overage?

An overage is a charge applied when a customer exceeds the usage limits included in their base subscription plan. It is billed at a specific rate for each unit used beyond the pre-allocated amount.

Why It Matters

• It allows customers to continue using a service without interruption even after they hit their plan limits.

• It provides an automatic way for businesses to increase revenue as a customer’s needs grow.

• It serves as a natural trigger for sales teams to reach out and suggest a plan upgrade.

• It ensures that the business is compensated for the additional resources consumed by heavy users.