Daniel Saks
Chief Executive Officer
Seat licenses and tiered plans are so last decade. I know, that’s a provocative claim. But after over a decade building B2B software companies, I’m convinced the old SaaS pricing playbook is breaking down. In the early days of SaaS, I helped thousands of software vendors sell per-user subscriptions. That model worked in the cloud era, but today’s AI-native applications operate on completely different dynamics. The way we price software hasn’t caught up to how we use software in the age of AI. It’s time to rethink what we charge for—and why.
Classic SaaS pricing was built around predictability: monthly subscriptions, seat licenses, feature-based tiers. It made sense when software value scaled roughly with number of users or feature access. But automation and AI have flipped that script. As software gets smarter, value is no longer proportional to how many humans are clicking around. In fact, it’s often the opposite. When an AI system can do the work of five people, charging per seat starts to look absurd(2). Consider a modern AI sales assistant that automates outreach: if it replaces an SDR team, should the customer pay for zero seats? Monetization can no longer be tied exclusively to human users or static feature bundles(2). Traditional tiers also fall short—AI features don’t slot neatly into “Basic vs. Pro” packages when their usage (and value) can vary wildly from one customer to the next.
I’ve watched this mismatch grow in real time. Many software trends undermined the old pricing model: Automation means the better your product, the fewer users required(2). API-first services deliver value via integrations without any user interface at all(2). And AI takes it further by autonomously handling tasks end-to-end. In an AI-driven world, pricing by seat or rigid tier simply doesn’t reflect the value customers get. Forward-thinking companies see this and are making a change.
A new breed of AI-native startups – I’ll call them Vibe AI companies – are pioneering models that make legacy SaaS pricing look downright antiquated. Instead of charging for access to software, they charge for outcomes and actual usage. In practice, that often means credit-based or consumption-based pricing with a low (or free) entry barrier. Users get to try the product and pay more only as they receive value.
We’ve seen mainstream validation of this model. In 2024, Box (yes, the storage company) rolled out a credit-based plan for its new AI features. Every user got 20 AI credits per month to start, with tasks costing one credit each – a far cry from flat per-user fees(1). This let Box align price with usage: light users pay little or nothing, power users draw from a shared pool and pay more if needed. As Box’s CEO Aaron Levie explained, this approach ensures customers pay for the value they actually get (and accounts for underlying AI costs)(1). Meanwhile, Microsoft stuck to the old playbook, slapping a $30/user surcharge for its AI Copilot – regardless of actual usage(1). Which model do you think customers prefer? Not surprisingly, the pay-for-what-you-use approach is spreading fast. Nearly 74% of SaaS businesses are expected to offer some form of usage-based pricing by 2023(4). And it works: public software companies with predominantly usage-based pricing are growing roughly twice as fast as their peers with subscription-only models (25% vs 13% annual growth)(3).
As a founder, I find this shift refreshing. It forces us to earn customer spend through actual delivered value, not locked-in contracts. At Landbase, for example, we embraced a “free-to-scale” model from day one. Anyone can launch intelligent go-to-market campaigns on our platform for free, then ramp up usage once they see results. This builds trust: customers only pay as our AI drives outcomes for them. And because those outcomes are clear – e.g. more leads, higher conversions – they’re happy to scale. In fact, we’ve seen Landbase campaigns achieve 4–7x higher conversion rates at roughly 80% lower cost than traditional approaches(5). When your product delivers that kind of efficiency, you don’t need a hard sell or heavy upfront fee. Usage-based pricing lets the product speak for itself.
Usage-based models are a big step forward, but the real endgame is even more granular: value-based pricing. Why charge for raw usage if you can charge for actual results? The idea is simple in concept yet radical in implication: customers pay for the outcomes the software delivers – nothing more, nothing less. I highlighted this in a Forbes piece last year, calling out “Value-Based Pricing” as a hallmark of true AI-native apps (pay based on results, not users)(3). We’re starting to see it happen.
A great example is Intercom’s Fin AI chatbot. Rather than a pricey add-on or unlimited use fee, Fin costs just $0.99 per successful resolution(2). In other words, businesses pay only when the AI actually solves a customer’s issue (either confirmed by the user or with no human escalation). Talk about aligning price with value! This kind of success-based pricing flips the traditional SaaS script entirely: the vendor assumes the risk of performance. If the AI doesn’t perform, the customer doesn’t get charged. And if it performs too well? Well, the vendor is happy to charge for each success because it means the customer is getting real, measurable benefit.
We can imagine similar outcome-centric models across the board. Instead of paying $5,000/month for a generic lead-gen software license, what if you paid $50 per qualified lead delivered to your pipeline? Instead of $x per user for a sales engagement tool, what if you paid per meeting booked or per deal closed that the software influenced? Some enterprise software providers are already experimenting here, essentially acting as partners who get paid when the customer makes money. For AI products especially, this could become the norm. When AI agents can autonomously drive revenue or cost savings, why not price them like contractors or affiliates – on performance? It’s a win-win: customers love the guaranteed ROI, and vendors create a virtuous cycle (deliver more value, earn more revenue).
So if usage-based and outcome-based pricing are here now, what’s next on the horizon? I see a few exciting (and perhaps speculative) directions:
None of this is science fiction. In fact, at Landbase we’re already thinking about how these models could enhance our “AI Go-to-Market” vision. We’re committed to staying flexible – whether that means introducing outcome-based options (imagine paying per meeting Landbase sets up for you) or enabling an ecosystem where partners can contribute AI extensions. The key is to keep pricing aligned to genuine value delivered, even as that value grows more sophisticated.
The broader point is this: it’s time to retire the 2010s SaaS pricing mindset. If you’re building or selling software, ask yourself whether your pricing truly reflects the value you deliver. Are you charging for software access (the old way), or for outcomes and usage (the new way)? If you’re a buyer, don’t be afraid to demand more flexible models – why pay upfront for shelfware or arbitrary limits? The AI revolution offers a chance to realign the entire software economy around customer success. We should seize it.
I encourage every tech leader to experiment. Try turning one of your product’s rigid plans into a usage-based offering and see how users respond. If you’re a buyer or executive, pilot a new tool on an outcome-based contract – share the risk and reward with your vendor. And most of all, rethink how you define value in software. The next generation of tech companies (the Vibe AI vanguard) will win by delivering undeniable results first and monetizing second. I’ve bet my own company on this belief: at Landbase we let anyone start free and scale as they grow, confident that if we deliver predictable, intelligent go-to-market campaigns, the revenue will follow.
Seat licenses and tiered plans had their day. The future is software that works for you, priced for you. It’s a future where we pay for outcomes, not access. Those who embrace this shift early will build deeper customer trust and unlock new growth. Those who don’t… well, they might wake up to find their SaaS pricing was killed by a new vibe they never saw coming. Let’s all be on the right side of that change. The playbook is being rewritten – it’s time to turn the page.
Try shifting just one product to usage-based pricing and watch the adoption uptick. And if you’re looking to experience a fresh approach firsthand, consider test-driving an AI-powered platform that exemplifies these principles – for instance, you can try Landbase for free and see how a usage-based, outcome-driven model can transform your go-to-market. The sooner we all start pricing and buying software based on real value, the faster we unlock win-wins for customers and providers alike. After all, the best way to predict the future of software is to start building it. Let’s build it on value.
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