Welcome to the Starter plan. It’s a free tier capped at 100 GB bandwidth for getting started. Suddenly waking up the next day to a $104,000 bill does not sound like getting started to me, but more like getting ended both personally and financially.
There are no (or there shouldn’t be) any risks associated with a Starter plan. This isn’t a game of surprise and there should be absolutely no risk elements (let alone as extreme as bankruptcy which is the main point here) associated with it. People choose the Starter plan because they are not in a position that is able to or ready to pay large bills, which includes hobby projects, people in countries with relatively high USD exchange rates (not everyone is privileged and there’s no regional pricing), those simply testing the platform and evaluating it among other competitors, and so on.
What do Netlify get out of it? I have good news for you. If you have a site that gets heavy traffic (especially for commercial sites rather than hobby/personal projects), you can upgrade to the Pro plan for 10x the bandwidth (1 TB) and a lot of other extra benefits and features at only $19/month, which is what every sane user would do and how freemium business models work. There are no sudden gotchas or ‘risks’ here, just transparent pricing depending on need and traffic. Want more? Luckily, you can upgrade more.
If you really believe there should be a ‘risk’ associated with a Starter plan, this is a point I’m not interested in debating because (and rightly so) even Netlify (including the CEO) believe there should be no such extreme risk associated with the Starter plan, which is why they have stated and confirmed that they have (in this case and previous cases) and will waive any sudden large bills incurred from heavy traffic spikes. This is something other sites also do, like Plausible Analytics for example, even for subscribers; if you have a sudden spike, they do not charge you extra for it, but if you have a consistent pattern of heavy traffic beyond your current plan, they will nudge you to upgrade your plan or otherwise stop providing the service.
If you’re really wondering what a business gains out of having a freemium business model and a free tier in general, I’m not here to explain it because I’m sure you can do your own research on it, especially when competing with competitors such as Cloudflare Pages (who offer unlimited bandwidth, among a host of other free services), GitHub Pages, Vercel (who have apparently now added spend limits) and so on. Cloudflare offer a lot for free because they gain a huge amount of traffic data, insights and analysis from so many users that helps improve their systems which they market and sell to enterprises. For starters, there would be far less reason for people to bother with trying out or getting into Netlify (and eventually do what a lot do and upgrade to subscribers, apart from just helping growth through spreading the word) which is bad for business and competition, and it doesn’t take a genius to figure this out when the comments, backlash and those who’ve now decided to avoid or stop using Netlify altogether and opted for the alternatives on both Reddit and HN are very telling.
The Starter plan is one of the main reasons Netlify is so popular and loved and recommended by many people and developers, and it seems Netlify are well aware of all of this, otherwise they would have a different stance and policy when it comes to billing Starter plan users. But as I mentioned, I’m not interested in going into any discussion on business models nor have the time or mental bandwidth for it, and just dropped by here to give my two cents on what an obvious solution would be for both Netlify (who don’t want people to face risks such as sudden huge bills) and its Starter plan users (who want more transparency, controls and flexibility when it comes to being billed) in light of the recent situation.