Lago's blog post details how their billing platform now supports custom SQL expressions for defining billable metrics. This allows businesses with complex pricing models greater flexibility and control over how they charge customers. Instead of relying on predefined metrics, users can now write SQL queries directly within Lago to calculate charges based on virtually any data they collect, including custom events and attributes. This simplifies the implementation of usage-based billing scenarios like charging per API call with specific parameters, tiered pricing based on aggregate usage, or dynamic pricing based on real-time data. The post emphasizes how this feature reduces development time and empowers product and finance teams to manage billing logic without extensive engineering involvement.
The Lago blog post, "Solving complex billable metrics with custom SQL expressions in Lago," details how Lago's platform now allows users to define highly customized billable metrics using SQL expressions, offering greater flexibility and control over billing logic. Traditionally, subscription billing systems struggle with complex, usage-based pricing models. Lago addresses this challenge by enabling users to leverage the power and expressiveness of SQL directly within their billing engine. This allows for the creation of intricate metrics tailored to unique business requirements, moving beyond simple, pre-defined metrics.
The post emphasizes the limitations of traditional subscription management platforms, where metrics are often rigid and lack the granularity needed for complex scenarios. For instance, if a business wants to charge based on a specific interaction or a combination of factors, traditional systems may fall short. Lago's custom SQL expressions provide a solution by allowing users to define billable metrics based on any data stored within their Lago instance. This empowers businesses to implement sophisticated pricing models, such as tiered pricing based on specific usage patterns, or hybrid models combining usage with subscription fees.
The blog post provides a practical example of calculating the number of weekly active users (WAU) with a custom SQL expression, demonstrating how this feature can be used in a real-world scenario. This example highlights the flexibility and power of the SQL-based approach, allowing businesses to calculate metrics that are precisely aligned with their specific definition of an "active user." This granular control enables more accurate and transparent billing, reducing the risk of disputes and improving customer relationships.
Furthermore, the post emphasizes the extensibility of this feature, suggesting that any aggregatable data within the Lago platform can be used to construct custom billable metrics. This opens up numerous possibilities for innovative pricing models and allows businesses to tailor their billing to reflect the true value delivered to their customers. By bringing the power of SQL to billing metric definition, Lago simplifies the implementation of complex pricing structures, enabling businesses to experiment with and adapt to evolving market demands without being constrained by rigid billing systems. This ultimately allows businesses to focus on their core product and value proposition rather than wrestling with intricate billing logic.
Summary of Comments ( 0 )
https://news.ycombinator.com/item?id=42840303
Hacker News users discuss Lago's approach to flexible billing using custom SQL expressions. Some express concerns about the potential complexity and debugging challenges of using SQL for this purpose, suggesting simpler alternatives like formula-based systems. Others highlight the power and flexibility SQL offers for handling complex billing scenarios, especially for businesses with intricate pricing models. A few commenters question the performance implications of using SQL queries for real-time billing calculations and suggest pre-aggregation or caching strategies. There's also discussion around the trade-off between flexibility and auditability, with concerns about the potential difficulty in understanding and verifying SQL-based billing logic. Some users share their experiences with similar systems, emphasizing the importance of thorough testing and validation.
The Hacker News post "Solving complex billable metrics with custom SQL expressions in Lago" at https://news.ycombinator.com/item?id=42840303 has generated several comments discussing the merits and drawbacks of Lago's approach to billing using custom SQL expressions.
One commenter expresses concern about vendor lock-in, suggesting that relying on a specific vendor's SQL dialect for defining billing logic could create difficulties if migrating to a different platform in the future. They propose that a standardized approach, perhaps using something like CEL (Common Expression Language), might be a better long-term strategy.
Another commenter points out the inherent complexity of billing systems and argues that SQL, despite its potential for vendor lock-in, is a reasonable choice due to its widespread familiarity and the existing tooling available for working with it. They acknowledge that no single solution will be perfect for every scenario but suggest that SQL offers a good balance between flexibility and accessibility. This comment sparked further discussion about the benefits of standardization versus the practicality of using existing, well-understood tools.
Building on the vendor lock-in concern, another user notes the potential for "gotchas" within custom SQL implementations. They highlight that subtle differences in how SQL dialects handle specific functions or data types could lead to unexpected billing discrepancies. This reinforces the argument for careful consideration and thorough testing when employing custom SQL for billing.
A different perspective is offered by a commenter who appreciates the transparency and control that custom SQL expressions can provide. They argue that being able to directly define billing logic in SQL allows for greater flexibility and customization compared to relying on pre-defined billing models. This, they suggest, can be particularly beneficial for businesses with unique or complex billing requirements.
There's also a brief discussion about the potential performance implications of using custom SQL for billing. One commenter raises the question of how Lago handles the execution of these SQL expressions and whether it could introduce performance bottlenecks, especially with large datasets. This concern, however, wasn't addressed directly in the comments.
Finally, some commenters mention alternative approaches to billing, including using tools like Stripe Billing or building custom in-house solutions. These suggestions highlight the range of options available to businesses and emphasize the importance of choosing the right solution based on specific needs and constraints.