# Key Concepts

This chapter introduces the most important concepts in Paigo and uses examples to help understand how those concepts can be used for real-world cases.

### Terminology

**Offering:** Offering represents a pricing plan of the product, or how the product is charged. *As an example, an offering called "Enterprise Plan" is priced $49 per month for subscribed SaaS customers.*

**Dimension:** Dimension represents a valuable product metric that SaaS customers can consume and be charged on. *As an example, a dimension for an API SaaS would be API requests and a dimension for a machine learning platform would be the minutes of GPU used.*

**Customer:** Customer represents a SaaS customer of the SaaS business who uses products and make payments for their usage.

**Measurement:** measurement represents the implementation of how dimension usage is measured, collected and tracked.  *As an example, a dimension called Processing Time (Minutes) for a machine learning SaaS application needs a measurement to define how Paigo calculates the running time in the SaaS infrastructure (such as GPU running in a Kubernetes Pod) and the frequency for Paigo to sample the running time (such as every 30 seconds).*

### Use a typical CRM SaaS as an example

A CRM SaaS business manages an offering called "Basic Plan" that charges $1.30/email sent and $10/Seat. A customer called John Doe subscribes to this plan. These relationship is illustrated in the diagram below.

<figure><img src="https://3896284822-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F6A4R1rYAI87V2R47cxIl%2Fuploads%2Frqgd6cSFz0A7ZsUc93MH%2Fimage.png?alt=media&#x26;token=a5c01181-fa8e-4b65-98e8-b81443d47eea" alt=""><figcaption></figcaption></figure>

Each of the dimension in the above diagram may have a measurement assigned so that the usage can be measured, collected and tracked. The full picture is illustrated in the diagram below.

<figure><img src="https://3896284822-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F6A4R1rYAI87V2R47cxIl%2Fuploads%2Fx9dK7rLohhkbLOfN1IsE%2Fimage.png?alt=media&#x26;token=d07d8fe6-eade-4e63-a7f1-5b2d403aeaf5" alt=""><figcaption></figcaption></figure>