Finance

Revenue Leakage in Usage Billing: 7 Causes and How to Fix Them

By the Orvlin team · · 6 min read

Seven common causes

  • Dropped or delayed usage events.
  • Overage terms not configured after a contract change.
  • Expired discounts that keep applying.
  • Manual spreadsheet calculations.
  • Unbilled one-off services.
  • Mismatched customer IDs between systems.
  • Missed true-ups on commitments.

How to detect leakage

Reconcile product usage against invoiced quantities every period, and review contracts against billing configuration quarterly.

How to prevent it

Use a single system that ties contracts, pricing and usage together, with alerts when configured terms expire or usage has no matching price.

Frequently asked questions

How much revenue do companies typically leak?
It varies widely; the only reliable way to know is to reconcile usage to invoices.

Keep reading

Launch your next pricing model this quarter.

Spin up a sandbox, send your first events, and see a finalized invoice before your next planning meeting.