Usage Based Pricing

“The database autofill feature will soon be agentic. That will be associated with usage based pricing”

“We get far more revenue from our usage-based pricing customers than we do from our traditional subscription-based customers.”

“On outcome-based pricing it sounds very appealing, like, if it can work, but one thing that we've started realizing is it actually ends up correlating quite a bit with usage-based pricing, especially with test time compute. Like, if the thing is just, like, th…”

“It'll push more and more to, I think, just usage based pricing, right? I think if you have a, if you have an underlying commodity that you're reselling to some degree that has, that is that large a part of your cost of goods, right? You need to go to usage bas…”

“I tend to think that the usage based pricing and outcome based pricing is the most fastest way to a billion.”

“I don't think, I think there's a huge difference between outcomes based pricing and usage based pricing, because especially in AI, they're not necessarily even correlated and you could have a long phone call, not solve the customer's problem. And they give you…”

“I think usage based as a business model for Microsoft is going to get more and more common.”

“Usage-based pricing. Where people are paying an agent for completing a task, or people have recurring tasks, and they pay based on, you know, every single use of the task, and they normalize this system based on, like, how much it would take to hire a person t…”

“Usage-based pricing is generally bad. Like, it's like, if you think about the hierarchy of business models, like paying for what you use, like, you know, pay for what you eat is like just a worse business model than pay me no matter what.”

“Especially with agents coming into the play, like how you pay for AI workers is going to be very different. You know, what is that unit of completion for things like code generators is going to be, it's going to be a wild, wild west before we come up with some…”

“People typically are wary of totally uncapped usage-based pricing, so you might want to put a cap on that.”

“In general, committed recurring revenue, that's monthly recurring revenue or annual recurring revenue is preferable to usage based pricing. And that's because during an economic downturn or a slowdown, your revenue is protected at least until the contract is u…”

“I definitely don't think it's the case that everything is going to be usage based and everything is going to be sort of an extreme variation of usage based.”

“It was probably a minority concern as recently ago as, you know, three or four years. But now like the majority of B to B software companies are using some planning usage based pricing.”

“Asking people to commit before the product usage increases friction, and it slows down adoption. So you'd rather land, show value, and expand in a kind of a natural, organic way. And usage-based pricing is essentially the purest form of Product-led growth, rig…”

“A small fliver, less than 10%, around roughly five percent have just pure natural escalator, kind of usage-based model. The vast majority have a hybrid approach.”

“I think one challenge with purely usage-based models is that's not always how CFOs want to buy. I think buyers sometimes want predictability. They want to be able to budget for your tool.”

“Frankly, this is the best time to actually think about these things. Like if, you know, if people are not using the product, changing it to a usage-based, people would say that's great because You know, there's a downturn. We're not using the product. And they…”

“I think if you look at sort of some of the competitors pricing where people are charging like for usage based pricing, I mean, it's pretty interesting, but as a SMB, it makes your pricing like super unpredictable.”