Outcome-Based Pricing

Most AI companies charge for work, not outcomes. Success-based pricing flips this approach, aligning costs with measurable customer value. This model is gaining traction in applications like AI-powered customer support, where fees are tied to successfully resolved tickets. For example, Intercom's AI chatbot defines a successful interaction as one where the customer's issue is resolved or they don't return within 24 hours. While this model is highly aligned with customer goals, defining and measuring success requires mutual agreement between the vendor and the customer. To learn more about success-based pricing, read this excellent article from Kyle Poyar.

#What does this pricing model solve?

• Aligns price with delivered value
• Supports organic account growth
• Works well with PLG and self-service models
• Simplifies cost forecasting by tying it to business outcomes

#Why is this pricing model challenging?

• Defining and measuring success can be complex and subjective