The New Monetizing Playbook: A Product Leader's Framework for Pricing GenAI Capabilities

1) The Problem: The per-seat SaaS model is broken. Generative AI's value scales with outcomes, not users, misaligning revenue with high API costs.2) The Value Metric: Avoid Cost-Plus Pricing. Instead, charge for tangible "AI outcomes" (e.g., "bug-fix generated") rather than "AI usage" (e.g., "tokens used").3) The Packaging: Avoid bundling AI only in "Enterprise" tiers. A "horizontal add-on" (such as an AI Co-Pilot subscription) available to all users creates a more effective growth loop.4) The Tactic: Test your pricing. A "credits" system (e.g., "200 AI credits") can convert significantly better than a flat monthly fee by giving users control and a safe way to try the feature.5) The Strategy: Build a habit first. Use a free credit model to let users experience the "magic" before hitting them with a paywall.