After reading the article and seeing your argument about this AI-driven era, I couldn’t help but write my thoughts here.
I once read a book about "Product-Led Growth" (PLG), which also discussed the pricing models of SaaS companies and highlighted how implementing the PLG strategy aligns closely with the concept you mentioned: "Interaction-Based Pricing."
Traditional seat-based licensing charges fees upfront before the software is used. In contrast, interaction-based pricing can be viewed as a step toward achieving "Outcome-Based Pricing." SaaS vendors should no longer see themselves only as "tool providers" that help clients cut costs, but rather as "revenue partners" that help clients to generate greater revenue through SaaS solutions.
By adopting this perspective, we can see AI as a critical methodology for delivering "outcomes" that bring higher value to clients (new metrics are needed to measure this value). This approach clarifies why everyone will eventually become an "AI product manager."
This shift will drive a positive revenue cycle: the more revenue clients generate, the more revenue vendors can share.
Happy New Year, Prashanth!
After reading the article and seeing your argument about this AI-driven era, I couldn’t help but write my thoughts here.
I once read a book about "Product-Led Growth" (PLG), which also discussed the pricing models of SaaS companies and highlighted how implementing the PLG strategy aligns closely with the concept you mentioned: "Interaction-Based Pricing."
Traditional seat-based licensing charges fees upfront before the software is used. In contrast, interaction-based pricing can be viewed as a step toward achieving "Outcome-Based Pricing." SaaS vendors should no longer see themselves only as "tool providers" that help clients cut costs, but rather as "revenue partners" that help clients to generate greater revenue through SaaS solutions.
By adopting this perspective, we can see AI as a critical methodology for delivering "outcomes" that bring higher value to clients (new metrics are needed to measure this value). This approach clarifies why everyone will eventually become an "AI product manager."
This shift will drive a positive revenue cycle: the more revenue clients generate, the more revenue vendors can share.
Thanks for your sharing again!