Does usage-based pricing require a new growth infrastructure? • TechCrunch


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“It’s not usage-based or subscription-based pricing,” venture capital firm OpenView wrote in its second Use-Based Valuation report. These hybrid approaches require new tools, but which ones? Let’s explore together. — anna

Complex prices are increasing

As we learned earlier this week from the latest OpenView report, Usage-based pricing is increasing, but not replacing other models.

Sure, many SaaS companies are billing their customers based on how they use the service. But this is often combined with other pricing methods, such as tiered subscriptions.

OpenAI’s ChatGPT is the latest example of this hybrid pricing approach. In addition to the free tier, it Introducing ChatGPT Plus, a fairly simple subscription model that starts at $20 per month. But the company also speak it is “actively exploring options for lower cost plans, business plans and data plans”.

Data plan: That would be a form of usage-based pricing, but one that won’t replace a subscription. Meaning ChatGPT will join the growing range of complex priced products.

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