Doing the work

We are launching an AI product. How do we choose between charging per seat, per use and per outcome?

Start from who or what does the work. If people use the product to do their own job better, a seat still makes sense and buyers know how to budget for it. If the product does the work itself, charge for the work: per use or per credit where usage is easy to count, and per outcome (a resolved ticket, a booked meeting, a reconciled invoice) only where you and the customer can agree what counts and your product measures it rather than leaving it to argument. Most teams land on a hybrid: a platform fee that includes an allowance of credits, with overage above it, which gives the buyer a predictable number and covers your model costs on heavy users. Set the price after a month of metering cost per customer, because a small share of users usually drives most of the inference bill, and plan for gross margins nearer 50 to 65 percent than the 80 percent of classic SaaS. If you sell to Indian SMBs, show the allowance as a fixed monthly plan in rupees, since a meter reads as an open-ended bill. Expect to reprice within a year, and write your contracts so that you can.

Go deeper

5 resources, 5 link-checked.

📰 Newsletter
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The clearest statement of why per-seat pricing breaks when software does the work, with the support agent example (115 dollars per seat per month becomes a price per resolved ticket) and the variable cost problem underneath AI products.

AI Is Driving A Shift Towards Outcome-Based Pricing

From Andreessen Horowitz by Ivan Makarov, James da Costa and Bobby Pinero short read

  • When AI resolves the ticket, Zendesk's 115 dollars per seat per month for support agents stops making sense.
  • Three shifts: software becomes labor, the seat stops being the atomic unit, and model API costs make COGS variable.
  • Decagon sells both per conversation (usage) and per resolution (outcome) as parallel options.
  • AI-native companies price on usage or outcomes while incumbents mostly hold per-seat or bundled models.
Open a16z.com →
📰 Newsletter
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The margin defence most companies are actually reaching for. Poyar's number is the one to remember: roughly 70 to 80 percent of token consumption comes from about 10 percent of users, which is why a flat seat price on an AI product bleeds quietly.

Why everyone's switching to AI credits

From Growth Unhinged by Kyle Poyar 14 min read

  • 70 to 80 percent of token consumption comes from about 10 percent of users, which is what breaks flat pricing.
  • Microsoft, Salesforce, Cursor and OpenAI all moved to credit based models within months of each other.
  • Model costs are not falling as promised: GPT-5 output is around 10 dollars per million tokens, close to GPT-4o in early 2024.
  • Credits exist as a guardrail because AI gross margins are already thin, not because customers asked for them.
Open growthunhinged.com →
📊 Report
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Survey data from 230 B2B software and AI companies, so you can see what your peers are actually charging rather than what conference talks claim. Notable findings: hybrid pricing is now dominant and AI products carry thinner margins than classic SaaS.

The state of B2B monetization in 2026

From Growth Unhinged by Kyle Poyar long read

  • 37 percent of B2B companies now run hybrid pricing, up from 25 percent a year earlier.
  • The median target margin on AI features is about 50 percent, not the 70 to 80 percent of classic SaaS.
  • 29 percent use AI credits today and another 33 percent plan to add them within 6 to 12 months.
  • 70 percent say AI spend comes out of the customer's existing software budget, not new money.
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📄 Article
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Gives you the current benchmarks to set expectations with your board (roughly 45 to 53 percent depending on how much of the stack you own) and four concrete moves: pick a margin posture deliberately, meter cost per customer, route to cheaper models by default, price with usage.

AI Gross Margins: Why the 90% SaaS Benchmark Is Gone

From Jeff Brokaw by Jeff Brokaw 12 min read

  • ICONIQ's survey of about 300 software executives puts AI product gross margins at 45 to 53 percent in 2026.
  • The 90 percent SaaS margin was always mythology, 80 percent was the real industry assumption.
  • Every AI request carries real variable cost: inference, retrieval infrastructure and human review.
  • Cost curves diverge: a fixed capability gets 5 to 10x cheaper a year while frontier model pricing rises 3 to 18x.
Open jeffbrokaw.com →

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