Company
Date Published
Author
-
Word count
890
Language
English
Hacker News points
None

Summary

In the AI SaaS industry, pricing strategies are integral to product success, aligning revenue with the actual value delivered to customers, such as GPU time or token usage. The text outlines six effective pricing models for AI SaaS companies, including flat-rate subscription, pay-as-you-go, tiered usage, hybrid subscription with overage, seat-based pricing, and prepaid credits. These models offer flexibility for businesses at different stages of growth and can be implemented using Lago, an open-source billing engine. Lago facilitates the adoption of these models by providing real-time metering, flexible pricing logic, and native wallets, allowing companies to adapt their pricing strategies without complex custom development. The key takeaway for AI product builders is the importance of flexible and modern monetization strategies that evolve with user engagement, starting with usage-based models to reduce onboarding friction and transitioning to hybrid or subscription models as usage stabilizes.