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Ep. 161 - Is User-Based Pricing Dead? How AI Is Reshaping SaaS Monetization
Manage episode 476443350 series 2943493
Guest: James D. Wilton, Founder & Managing Partner of Monevate
The advent of AI is forcing a complete rethink of traditional SaaS pricing—particularly the long-standing dominance of user-based pricing.
In this episode, pricing strategist James Wilton explains why AI-native products are undermining the foundations of per-seat pricing models.
Unlike traditional SaaS, where users are the proxy for value, AI tools often perform tasks autonomously, disconnecting cost from usage in unpredictable ways.
As a result, the most value-aligned and sustainable pricing approach for AI-powered platforms is shifting toward usage-based models.
Wilton argues: "If you’re still defaulting to user-based pricing, you’d better be ready to defend it."
📌 Other Takeaways:
- Misaligned Incentives in AI Pricing
With AI, the metric that drives cost (compute) is often not the same as the metric that reflects customer value—creating tension between profitability and value-based pricing. - The Rise of Usage-Based Pricing
As automation and AI reduce the need for additional users, user-based pricing loses its relevance. Usage-based models offer better alignment with customer value and revenue scalability. - Customer Expectations Are Changing
Enterprises prioritize cost predictability. Even in AI-native environments, buyers want fixed pricing or capped usage tiers to maintain budget certainty. - Real-World Example: Help Scout’s Pivot
Wilton shares a case study on Help Scout’s move from per-user to “contacts helped” pricing. The shift improved customer satisfaction, better aligned with value delivered, and even offered greater revenue predictability.
📚 James Wilton’s Book:
Capturing Value: The Definitive Guide to Transforming SaaS Pricing
Get the blueprint for designing pricing that drives both growth and profitability without shortchanging strategy.
---
Not Getting Enough Demos?
Your messaging could be turning buyers away before you even get a chance to pitch.
🔗 Get a Free Messaging & Conversion Review
We’ll analyze your website and content through the eyes of your buyers to uncover what’s stopping them from booking a demo. Then, we’ll give you a personalized report with practical recommendations to help you turn more visitors into sales conversations.
And the best part?
💡 It’s completely free.
No commitments, no pressure—just actionable advice to help you book more demos.
Your next demo is just a click away—claim your free review now.
172 قسمت
Manage episode 476443350 series 2943493
Guest: James D. Wilton, Founder & Managing Partner of Monevate
The advent of AI is forcing a complete rethink of traditional SaaS pricing—particularly the long-standing dominance of user-based pricing.
In this episode, pricing strategist James Wilton explains why AI-native products are undermining the foundations of per-seat pricing models.
Unlike traditional SaaS, where users are the proxy for value, AI tools often perform tasks autonomously, disconnecting cost from usage in unpredictable ways.
As a result, the most value-aligned and sustainable pricing approach for AI-powered platforms is shifting toward usage-based models.
Wilton argues: "If you’re still defaulting to user-based pricing, you’d better be ready to defend it."
📌 Other Takeaways:
- Misaligned Incentives in AI Pricing
With AI, the metric that drives cost (compute) is often not the same as the metric that reflects customer value—creating tension between profitability and value-based pricing. - The Rise of Usage-Based Pricing
As automation and AI reduce the need for additional users, user-based pricing loses its relevance. Usage-based models offer better alignment with customer value and revenue scalability. - Customer Expectations Are Changing
Enterprises prioritize cost predictability. Even in AI-native environments, buyers want fixed pricing or capped usage tiers to maintain budget certainty. - Real-World Example: Help Scout’s Pivot
Wilton shares a case study on Help Scout’s move from per-user to “contacts helped” pricing. The shift improved customer satisfaction, better aligned with value delivered, and even offered greater revenue predictability.
📚 James Wilton’s Book:
Capturing Value: The Definitive Guide to Transforming SaaS Pricing
Get the blueprint for designing pricing that drives both growth and profitability without shortchanging strategy.
---
Not Getting Enough Demos?
Your messaging could be turning buyers away before you even get a chance to pitch.
🔗 Get a Free Messaging & Conversion Review
We’ll analyze your website and content through the eyes of your buyers to uncover what’s stopping them from booking a demo. Then, we’ll give you a personalized report with practical recommendations to help you turn more visitors into sales conversations.
And the best part?
💡 It’s completely free.
No commitments, no pressure—just actionable advice to help you book more demos.
Your next demo is just a click away—claim your free review now.
172 قسمت
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