It is going to become more and more important to align pricing with AI based buying processes. If the AI cannot understand your pricing model it is less likely to recommend purchase.
Brilliant Report Kyle - 👏 . I just Restacked with some comment - I'm in a fund raise with a company that's flying - many investors haven't made the shift to valuing Consumption, Outcome & Hybrid ie ReOccurring Revenue. Still anchored around giving a valuation premium to Per Seat & Flat 🙈 super interesting in the trenches for the Founders & PMs
I recall we spoke about it on LinkedIn when you published the survey. Kudos to you for all the work you do to generate these insights.
Great to see, the future is hybrid - at least, certainly in the short to medium term :)..
Thanks, Ankur! This was a fun one.
It is going to become more and more important to align pricing with AI based buying processes. If the AI cannot understand your pricing model it is less likely to recommend purchase.
Great article. I really love the CAMP framework for understanding why outcome based pricing is still out of reach for many.
Brilliant Report Kyle - 👏 . I just Restacked with some comment - I'm in a fund raise with a company that's flying - many investors haven't made the shift to valuing Consumption, Outcome & Hybrid ie ReOccurring Revenue. Still anchored around giving a valuation premium to Per Seat & Flat 🙈 super interesting in the trenches for the Founders & PMs
What i have been noticing in the industry more and more now are usage based pricing, almost all AI related companies have some kind of credit system.
And Outcome based i have also noticed at Intercom. Too expensive for a B2C (i use a custom RAG) company but makes sense for B2B.
Loved the insight as always. Kudos Kyle Poyar. 🥳