How AI is changing B2B software pricing models

This title was summarized by AI from the post below.

💡 𝗪𝗮𝗸𝗲 𝘂𝗽 𝗧𝗲𝗹𝗰𝗼𝘀! The rise of #AI is redefining #B2B software pricing, a shift you can't ignore. Customers are demanding to pay for value, not just access, which is pushing the industry away from traditional pricing models. 📊 𝗧𝗿𝗮𝗱𝗶𝘁𝗶𝗼𝗻𝗮𝗹 & 𝗘𝗺𝗲𝗿𝗴𝗶𝗻𝗴 𝗣𝗿𝗶𝗰𝗶𝗻𝗴 𝗠𝗼𝗱𝗲𝗹𝘀 𝟭. 𝗦𝗲𝗮𝘁-𝗕𝗮𝘀𝗲𝗱 / 𝗦𝘂𝗯𝘀𝗰𝗿𝗶𝗽𝘁𝗶𝗼𝗻 𝗠𝗼𝗱𝗲𝗹 (Traditional) This is the "Set it and forget it" model, where pricing is based on the number of users or user types. This model has a low degree of autonomy & attribution. Examples include Slack, Figma, Grammarly 𝟮. 𝗨𝘀𝗮𝗴𝗲-𝗕𝗮𝘀𝗲𝗱 𝗠𝗼𝗱𝗲𝗹𝘀 These models focus on "paying for what you consume" 💵Usage-Based: Resources: This model charges customers based on the resources they use, such as large language model tokens, storage, or compute power. It's the most common emerging model, with estimated 40% market share today. Examples include Twilio, Amazon Web Services (AWS), OpenAI 💵Usage-Based: Interactions: This approach charges per defined interaction or activity, like #API calls or output generation. It has an estimated 25% market share 𝟯. 𝗛𝘆𝗯𝗿𝗶𝗱 𝗣𝗿𝗶𝗰𝗶𝗻𝗴 𝗠𝗼𝗱𝗲𝗹 This model blends a base fee with consumption, described as "Base fee + Consumption". It has high attribution but low autonomy. Examples include Cursor, Canva, Clay 𝟰. 𝗔𝗴𝗲𝗻𝘁-𝗕𝗮𝘀𝗲𝗱 𝗠𝗼𝗱𝗲𝗹  In this model, customers purchase individual AI agents through a one-time fee or a subscription. This approach has an estimated 20% market share. An example cited is a research agent rumored to be priced at $20,000 per month, mimicking a salary. Example OpenAI? 𝟱. 𝗢𝘂𝘁𝗰𝗼𝗺𝗲-𝗕𝗮𝘀𝗲𝗱 𝗠𝗼𝗱𝗲𝗹𝘀 These are considered the "Win-win models" because the cost is directly tied to the value or outcome delivered. They represent the ideal of value-aligned pricing. 💵Outcome-Based: Jobs Completed: Payment is made after an AI agent successfully completes a specific, predefined job. This model has an estimated 10% market share today. Examples include Sierra and @Fin 💵Outcome-Based: Financial Pricing: Customers pay for specific financial results, such as cost savings or increased revenue. This is the most disruptive model, with the highest risks for vendors, & it currently has less than 5% market share. Example is Chargeflow ✅ Subscribe to #global5gevolution newsletter https://lnkd.in/ge9gsyjE ✅ Or subscribe #global5gevolution YouTube https://lnkd.in/g8M7YvKq) ✅ Follow us Kaneshwaran Govindasamy & Global 5G Evolution 𝗦𝘂𝗽𝗽𝗼𝗿𝘁 𝘁𝗵𝗲 𝗚𝗹𝗼𝗯𝗮𝗹 𝟱𝗚 𝗘𝘃𝗼𝗹𝘂𝘁𝗶𝗼𝗻 𝗰𝗼𝗺𝗺𝘂𝗻𝗶𝘁𝘆! Your support helps us continue delivering the latest insights, research, & conference discussions. Every contribution enables us to sustain & grow this platform for the benefit of all members 𝗖𝗵𝗼𝗼𝘀𝗲 𝘆𝗼𝘂𝗿 𝘄𝗮𝘆 𝘁𝗼 𝘀𝘂𝗽𝗽𝗼𝗿𝘁: 👉Small monthly recurring donation of $10: https://lnkd.in/e4MAD7pN 👉One-time donation: https://lnkd.in/eitCeewX

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