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Pricing in the AI Era: From Inputs to Outcomes, with Paid CEO Manny Medina
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.
45:29
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Quick takeaways
- AI companies are evolving from traditional cost-based pricing to innovative outcome-based models that align with customer value and needs.
- Focusing on specialized AI applications allows companies like Quandary and Happy Robot to effectively address niche challenges and achieve financial success.
Deep dives
The Shift to Value-Based Pricing
AI companies are transitioning from basic pricing models to more sophisticated, value-based approaches to better capture the value they create for customers. Manny Medina emphasizes the importance of aligning pricing with the specific needs and outcomes that customers find valuable, moving away from cost-based pricing. As companies mature, they should progress from activity-based models—where prices are simply based on the quantity of work done—to a system that factors in workflows and outcomes, allowing for flexible and customized agreements. This shift not only enhances revenue potential but also encourages stronger partnerships between service providers and clients.
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