Business Models for AI Products: Seats, Usage and Outcomes

The margin curve of each pricing shape is arithmetic and it is written out elsewhere. What is not is the behaviour each shape produces — in your product team, in your customers, and in which customers you attract at all. That is usually what decides whether a model survives its second year. Two questions people merge into one “What is the business model” is two separate questions wearing one name. The revenue model: what triggers an invoice. Seats, metered units, credits, outcomes, a licence.…