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Office Hours: Enterprise Deals is happening in 4 days
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10 Trends in AI Monetization
Howdy pricing people! Next week, we've got a great Office Hours session planned. I'll be joined by David Reid to discuss the trends he's seeing in AI monetization. David runs the Global Private Equity Growth Practice at Teneo, and is working with some of the biggest players in SaaS to transition their pricing for the AI era. Most people talking about AI monetization are working off one company's experiment. David is working across a portfolio of SaaS companies at once, so he can see which pricing moves are actually sticking and which ones get walked back a quarter later. A few things we'll dig into: - How to structure credit models for adoption and monetization - What happens to margin when AI usage gets bolted onto seat-based contracts - Where companies are currently landing on buy vs build when it comes to billing software "How do I charge for AI?" is the number one question I get right now, so I'm glad we're getting someone who sees it across dozens of companies at once. Details below: Thursday, September 17th @ 12pm EDT Register here 👉 https://luma.com/5xj4t5vf Hope to see you there! Rob
CRM anybody?
When do you think a CRM actually becomes worth using? I’ve found that setting one up too early can sometimes create more work than value if you’re still just trying to get deals in the door. Do you use one from the start, when you’re juggling potential leads, or wait until you have a few clients/leads to manage after closing? And which CRM do you recommend?
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Why I cancelled three AI tools this month
I pay for a lot of AI tools. This month I cancelled three of them because free tools on my laptop now do the same job. The only ones I kept do something I can't do on my own, like send email at scale. If a free tool can do what your product does, your price doesn't matter much. Curious if anyone here has seen this in their own numbers. Resource to find open source alternatives to paid subscriptions. Hope this helps! https://openalternative.co/alternatives?q=Granola&fbclid=PARlRTSAUNfK1wZG9mAmZkaWQWUOAdNkoDAUqdN2qMX_sX1ut2btn912V4dG4DYWVtAjEwAHNydGMGYXBwX2lkDzEyNDAyNDU3NDI4NzQxNAABp-An6IDuypAnbhWXg32094nzfB1UcHEqDVXkYLDraG1eBBjh0d0KvDxrB3Ar_aem_sdu4wCnJtY0Usx_ozMBrBg
Change the pricing metric, change the basis of customer trust
How you charge goes a long way into defining how customers receive value from you. When the metric changes, customers will re-evaluate if the value is still there and can be trusted. When Hubspot changed their model, they faced backlash not because they didn't plan for different segments, but because the customers didn't fully understand the new model. The lesson: CLEAR and PROACTIVE communication about how the new model will impact each customer goes a long way. https://www.linkedin.com/feed/update/urn:li:activity:7474793314920304640/ Love to hear your thoughts!
"Why are they charging for tokens if it's so valuable?"
I loved hearing Alex Karp on CNBC say that tokens measure the wrong thing https://www.youtube.com/watch?v=0A3sGymV6kY I'm not sure I agree with him on the needing to deploy your own models to overcome it. There's so much we can do in pricing to "fix" this!
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