Looking to chat with anyone who has experience monetizing on-prem products, specifically in the developer space. Some topics I'd like to think through: - Solution-based selling for on-prem offerings - How to upsell with minimal data insights & stonewall customers - The challenges (and benefits) of selling these products in a consumption-crazy/fatigued landscape Happy to provide more context. THANKS!

Came across this HubSpot piece on credit-based pricing. The article was published yesterday - suspiciously timely after last night's conversation on credits and transparency :-) @Rob Litterst , were you behind this one? https://blog.hubspot.com/website/why-ai-usage-based-pricing Found it quite insightful. I particularly liked the screenshots showing in-product cost labels at the point of action. HubSpot uses a credit badge on the data agent, whereas Airtable gives you a breakdown of what exactly your credits buy you. It's the difference between getting a surprise bill at the end of the cycle and watching the meter tick as you are using the product (so that you know when to stop spending). Great for building trust.

I wonder what you think about this "new" pricing model promoted by Nue. It feels like it's supposed to solve a very real shift: - "Old Saas" sold entitlements: licenses, seats, subscriptions - "New SaaS" increasingly sells committed spend against flexible consumption. Simply put: As a vendor, how do I give my customers flexibility without destroying (the predictability of) my revenue? I like the direction, but I wonder where it might break in practice. A few things that can go wrong in my mind: - it's difficult for customers to understand, because it's complex. - AI usage volatility is still crushing margins. - Frequent disputes about overage and unexpected credit burn. - Prone to metering inconsistencies = even more disputes. - Revenue still unclear + accounting complexity (taxes, compliance). - Product behaviour drifts away from the commercial intent over time (the entitlements become a bit fuzzy). Curious what people here actually think of this model. Have you seen it succeed or fail?

Just watched a webinar "The hidden cost of hybrid pricing" (by Nue), where the panelists discuss challenges with unpredictable revenue due to credit-based pricing. Here's what I understand is the key takeaway from the hour-long discussion. Credit usage is unpredictable = revenue might fluctuate and becomes unpredictable too. Recommendation: 1) Use credit to cover cost for features that aren't unique to the SaaS platform. Example: credits for LLM usage. 2) Apply value-based pricing (subscriptions or some other fee) for unique value your platform provides. Example: workflows, actions and other outcomes the customer cares about Are you structuring your pricing this way as well (credits for cost, non-credit for value), or do you apply credits to everything?

Where in your opinion SaaS companies mostly lose money? My hypothesis is that revenue is rarely lost in big events. More often than not, the loss happens over time due to small, repeated inconsistencies across systems. What I've seen: - deals don't fully match billing / legacy deals "we don't touch" - discounts don't expire - usage isn't fully captured - product evolves, but billing lags behind - leaving premium feature up for grabs None of these are dramatic, but they eventually accumulate to a small percentage of ARR. Does this match your experience? PS: Productivity hit is a separate topic: reporting in spreadsheets trying to merge edge cases and data from various systems.