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Pricing in the AI Era: From Inputs to Outcomes, with Paid CEO Manny Medina

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Apr 22, 2025
Manny Medina, former Outreach CEO and founder of Paid, shares insights on pricing for AI companies with a focus on unit economics. He argues that traditional SaaS models fail in the AI realm, advocating for outcome-based and agent-based pricing strategies. Manny emphasizes the success of niche AI applications over broad platforms and discusses the critical need for AI firms to refine their understanding of profitability. He also highlights the importance of quality customer focus and innovative company culture in driving growth.
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INSIGHT

Focus Nets AI Success

  • Narrowly focused AI agents specializing in specific workflows are currently highly successful and profitable.
  • Broad, general AI platforms face more competition and are less likely to dominate initially.
INSIGHT

AI Displaces Undesirable Jobs First

  • AI adoption will stick where it fully replaces undesirable jobs with high turnover.
  • High-paying creative jobs may see AI as a co-pilot rather than full replacement.
ADVICE

Evolve Pricing Models with Value

  • Move pricing from simple activity-based to sophisticated, outcome or agent-based models.
  • Align pricing with customer value to avoid churn and enhance revenue.
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