The explosive growth of AI has created a new challenge: the “inference whale.” This is a user whose consumption of your product’s resources is so high it threatens to capsize your cost model. For AI products, where inference costs can be substantial and unpredictable, managing these power users without alienating them is a delicate balancing act. The key is to implement fair-use policies that curb unsustainable consumption while still encouraging exploration and maintaining user trust.

This guide explores practical strategies for managing heavy consumption, including setting usage caps, offering burst credits, and creating negotiated plans for your biggest users. These methods help you build a sustainable business model while delivering a great experience for every customer, from the smallest fish to the biggest whale.

Fair-use limits are mechanisms designed to prevent a small number of users from consuming a disproportionate amount of system resources, which can degrade service for others and create unsustainable costs. Unlike hard paywalls, these systems are designed to be flexible, accommodating spikes in usage while nudging heavy users toward plans that better match their needs.

Here are a few common patterns for implementing fair-use limits:

• Weekly or monthly caps: A straightforward approach where users are allocated a set number of credits or operations per period. This is predictable for both the user and the business.
• Burst credits: Give users a bank of credits they can use to exceed their regular limits for short periods. This is great for accommodating temporary spikes in activity, like a product launch or a special project.
• Ramped pricing tiers: As usage increases, the cost per unit of consumption can either decrease (for volume discounts) or increase (to discourage excessive use). This can be an effective way to align pricing with value.

These strategies work together to create a system that’s both fair and flexible. Users who consistently exceed their limits can be gently guided toward higher-tier plans, while those with occasional spikes in usage aren’t penalized.

Managing consumption isn’t just about cutting costs; it’s about building a healthier, more sustainable business. When implemented thoughtfully, fair-use policies can improve user experience, increase revenue, and reduce support load.

Here are a few scenarios where these patterns are particularly effective:

• SaaS platforms with a free tier: Prevent abuse of free resources by setting reasonable usage caps. This ensures that your free tier remains a viable acquisition channel without becoming a financial drain.
• API-based services: For products that are consumed programmatically, usage can be highly variable. Burst credits and ramped pricing can help you monetize this usage effectively while providing a great developer experience.
• AI-powered content creation tools: The cost of generating images, text, or code can vary wildly. A credit-based system allows you to align your pricing with these underlying costs, ensuring that you’re not losing money on your most active users.

In each of these cases, the goal is the same: to create a system that feels fair to the user while protecting your business from the unpredictable costs of runaway consumption.

Implementing fair-use policies is not without its challenges. One of the biggest is communication. If users feel like they’re being nickel-and-dimed, or if the limits are confusing and unpredictable, you risk damaging trust and increasing churn. It’s crucial to be transparent about your policies and to communicate them clearly and proactively.

Another common misconception is that all heavy users are “bad.” In reality, these are often your most engaged and valuable customers. The goal is not to punish them, but to move them onto a plan that better reflects the value they’re getting from your product. This can be a delicate conversation, but it’s one that’s essential to have.

Finally, it’s important to remember that there’s no one-size-fits-all solution. The right approach will depend on your product, your users, and your business model. Be prepared to experiment and iterate to find the system that works best for you.

A successful fair-use policy is one that feels invisible to the majority of your users. For the small fraction who do encounter limits, the experience should be as smooth and painless as possible.

Here are a few best practices to keep in mind:

• Communicate early and often: Don’t wait until a user has hit a hard limit to let them know they’re approaching it. Use in-app notifications, emails, and other channels to give them plenty of warning.
• Make it easy to upgrade: The process of moving to a higher-tier plan should be self-service and instantaneous. Any friction in this process will lead to frustrated users and lost revenue.
• Offer escape hatches: For users who have a legitimate need for high consumption but aren’t ready to commit to a higher-tier plan, consider offering one-time credit purchases or other a la carte options.
• Be flexible: Your biggest customers are often your most valuable. Be prepared to negotiate custom plans and enterprise agreements to meet their unique needs.

By following these best practices, you can create a system that balances the needs of your business with the needs of your users, turning a potential point of friction into an opportunity to build stronger customer relationships.

1. The friendly heads-up (email)

Subject: A heads-up on your usage

Hi [User Name],

Just wanted to let you know that you’ve used 80% of your [feature] credits for this month. We’re excited to see you’re getting so much value out of the platform!

If you think you’ll need more, you can upgrade your plan at any time.

Happy building, The [Your Company] Team

2. The in-app nudge (notification)

You’re almost at your limit!

You’ve used 90% of your monthly credits. To avoid any interruptions, consider upgrading to a plan with higher limits.

[Upgrade Now] [Dismiss]

3. The enterprise whale (email)

Subject: A quick chat about your usage

Hi [User Name],

I’m reaching out because we’ve noticed you’re consistently getting a huge amount of value from our platform—that’s fantastic!

It looks like you’re regularly exceeding the limits of your current plan. I’d love to chat about how we can get you onto a plan that better fits your needs, with predictable pricing and a dedicated support channel.

Are you free for a quick call next week?

Best, [Your Name] Customer Success Manager

Kinde provides the billing infrastructure you need to implement sophisticated, fair-use consumption models without having to build them from scratch. With Kinde, you can easily create and manage metered billing, giving you the flexibility to charge for usage on a per-unit basis. This is ideal for AI products where the cost of consumption can be variable and unpredictable.

You can add metered usage for a customer via the Kinde API, making it simple to integrate with your existing product infrastructure. This allows you to track consumption in real-time and bill for it accurately, ensuring that you’re always aligned with your costs.

• Add metered usage for a customer via API
• Pricing models