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.

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.

AI companies should align their pricing with what matters to their customers after demonstrating value, rather than relying solely on fixed or consumption-based pricing models.

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.

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

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.

Pricing isn't just a number; it's a strategy that should evolve as your business grows, allowing for flexibility and adaptation to avoid common mistakes.

Don't set pricing based on compliance as a sales strategy, as it can lead to complications and customer dissatisfaction. Don't discourage adoption through your pricing model; think of pricing as an invitation, not a barrier, to make it easy for new users to adopt your product.

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