We aimed to create a recurring revenue model with the enterprise agreement, which allowed companies to pay a fixed amount annually for software usage.

For Enterprise pricing, avoid publishing fixed prices on your website; instead, use a contact sales approach to tailor pricing based on the specific value for each customer.

The pricing structure in software typically falls into three categories: $5 per seat, $500 per seat, or $55,000 per seat, corresponding to consumer, SMB, and enterprise sales.

Companies achieving high revenue are often using usage-based pricing models, which align costs with actual product usage, simplifying the sales process.

Successful companies are increasingly replacing traditional services with usage-based models, leading to rising revenues without the need for annual contracts.

It's important to keep pricing simple; complicating pricing structures can kill the sales process, and committed recurring revenue is preferable to usage-based pricing, especially during economic downturns.

We negotiated a non-exclusive deal with IBM for the operating system, allowing us to license it to others, which was crucial for our growth.

Typically, companies offer one or two cheaper plans for individuals or small teams, while reserving core functionalities for Enterprise plans, which can be priced significantly higher due to added compliance and legal requirements.

The pricing model for AI tools is shifting towards usage-based pricing, making it easier for companies to justify ROI and shorten sales cycles.