Usage-based pricing, where customers pay based on consumption, is gaining popularity, especially among cloud providers and AI products, as it scales with user demand.

Consider offering a discount for commitment, such as 10-20% off for annual subscriptions, to encourage adoption and ensure revenue predictability.

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

Subscription-based pricing offers predictability for both businesses and customers, often combining user-based pricing with monthly or annual subscriptions.

If you're unsure how to price, start with a number similar to other software your customers buy, then increase it by 50% for each new customer until you find the right balance.

Blending usage-based pricing with subscription pricing can provide predictability while allowing for growth, especially for AI startups.

Simplify and scale with tiered pricing; avoid having too many tiers to prevent confusion and ensure that your pricing aligns with your ideal customer profile.

To determine pricing, explore how your target customers pay for similar software products, whether it's a flat fee, per usage, or other structures, and align your pricing strategy accordingly.

When raising prices, it's best to notify customers sooner rather than later, and offering them a chance to lock in their current rate by switching to a yearly plan can be beneficial.