Ramanujam: AI coding tools will transition to outcome-based pricing
Madhavan Ramanujam · Pricing your AI product: Lessons from 400+ companies and 50 unicorns | Madhavan Ramanujam · Jul 27, 2025 · at 47:16
Madhavan Ramanujam, pricing strategist and founder of 49 Palms, explains the historical and future evolution of monetization in the software development space.
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“If you think about coding as a overall category, like you know, back in the day with GitHub, everyone, they started with a seed based model, right? They've now moved to like the hybrid based pricing model with cursors and everyone else, but the natural move would be more towards a outcome based pricing model where, you know, a AI agent can probably code everything at the same time, debug it, and you're kind of almost hiring a AI Developer or AI QA person, and that actually becomes more closer to like a outcome-based model because it's attributable and autonomous.”
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