Clay

## How does Clay's data credit waterfall system manage data provider costs?

## Overview Clay's data credit waterfall system is a feature designed to manage and optimize data enrichment costs by allowing users to configure a sequential hierarchy of data providers. This system operates on a credit-based model where different actions and enrichments consume a set number of credits. The primary mechanism for cost management is the ability to control the order in which Clay queries its integrated data sources, which number over 150. Users can strategically place lower-cost or unlimited-use data sources at the beginning of the sequence, reserving more expensive, premium providers for the end of the chain. This ensures that credits for premium data are only consumed when cheaper alternatives fail to produce a result. ## Key Features Another significant cost-saving feature is the ability for users to integrate their own existing subscriptions with external data providers. If a user has a direct contract and API key for a service like Apollo or Clearbit, they can input that key into their Clay waterfall. When that specific provider is called in the sequence, it consumes zero Clay credits, instead using the user's own subscription allowance with that provider. This allows businesses to leverage their existing data contracts and avoid paying twice for the same data. ## Technical Specifications The credit accounting system is structured to support this model. If a provider in the waterfall fails to find the requested information, Clay typically does not deduct credits for that specific attempt. This 'pay-for-what-you-use' approach ensures that budget is allocated only to successful data acquisition. The cost per credit can also be managed through subscription tiers; higher-tier plans like the 'Pro' plan offer a more cost-effective credit rate, making each credit up to seven times cheaper than on the 'Starter' plan. ## How It Works A core component of this cost-management strategy is the 'stop-on-first-valid' behavior. When Clay processes a record through the waterfall, it queries the first provider in the sequence. If that provider returns a valid and successful result, the process for that data point stops immediately, and the system moves to the next record. If the provider fails to find data or returns an invalid result, Clay automatically proceeds to the next provider in the defined sequence. This continues until a valid result is found or all providers in the waterfall have been queried. This mechanism prevents redundant lookups and ensures that users are only charged for the first successful data point retrieved, significantly reducing wasted expenditure. ## Use Cases In the context of a HubSpot integration, this system offers further cost efficiencies. The connection to HubSpot itself is free and does not consume credits. By pulling filtered 'Smart Lists' from HubSpot (e.g., contacts missing a job title), users can ensure they are only running enrichment workflows on records that actually need data. This targeted approach prevents wasting credits on contacts that are already complete, optimizing the overall budget for data enrichment. ## Limitations and Requirements ## Comparison to Alternatives The system also helps manage the tradeoff between time and cost. While building a custom in-house waterfall solution can incur significant development costs, estimated between $1,000 and $10,000, Clay provides this functionality as part of its platform, reducing overhead. ## Summary