Lenny Rachitsky shared the most important slide from his conversation with Madhavan Ramanujam. A 2x2 framework for determining the ideal pricing model: "Here we have attribution and autonomy. The lower left quadrant has low attribution and autonomy. In this case, the best pricing model is based on seats or subscriptions, as you can't attribute much to the value you provide. The lower right quadrant consists of companies that can demonstrate more attribution and show the actual value they bring. However, they still haven't fully achieved an autonomous model, and there is still human involvement. A hybrid pricing model is their best option. If you look at the upper left quadrant, those are products that are highly autonomous but weak in attribution. These are usually backend or infrastructure-type products. In this case, you need to use a pay-per-use model. What you really want to get into is the upper right quadrant. That is the outcome-based pricing model. Here, you have high autonomy and high attribution. You are not just charging for the work delivered, but for the work delivered by AI with no human involvement. If you want to succeed in the AI space, find a way to enter this quadrant because that is the magic quadrant.

Pricing Your AI Product: Lessons from Over 400 Companies and 50 Unicorns | Madhavan Ramanujam Full conversation content: • YouTube: • Spotify: • Apple:

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