Value-based pricing formula explained (with free worksheet)
Alvaro MoralesAI agents are reshaping how work gets done, from writing code to generating content, but the way companies charge for them hasn’t caught up. While seat-based pricing remains popular and still works for many products, it falls short when it comes to AI agents. That’s because the value of an AI agent isn’t tied to how many people use it — it’s tied to what the agent accomplishes.
If your AI agent pricing is solely based on headcount, you risk leaving revenue on the table and misaligning price with value.
Seat-based pricing made sense in SaaS because it mirrored how value was delivered and the economies of SaaS. The more people that use the software, the more value it provides to the company. Plus, SaaS has high fixed costs and near-zero marginal costs. As a result, seat-based pricing offered predictable, scalable revenue.
But AI agents don’t follow that logic. They augment human users or replace them entirely on specific tasks. One AI assistant may coordinate and schedule all meetings for a company but require only one person to set it up and manage it. This means its value scales exponentially while the seat count stays flat.
Here’s what goes wrong when you apply seat-based pricing to AI:
This is more than inefficient; it’s risky. Seat-based pricing offers low scalability and poor value alignment for AI products. If your pricing model doesn’t scale with usage and value, your business won’t either.
“In SaaS, if you double your users, you might only slightly increase costs, so profit scales nicely. In AI, doubling usage could nearly double costs, keeping profit flat unless pricing accounts for it.”
— Pricing AI Agents
If seat-based pricing limits scale, what are better options?
Usage-based, outcome-based, and hybrid pricing models do a better job at aligning how AI delivers value with cost. However, they each come with tradeoffs.
Customers pay based on what they use (e.g., compute time, API calls, tokens, images generated).
Revenue is tied to results (e.g., leads generated, transactions completed, tasks resolved).
Combines two or more pricing models (e.g., a flat subscription with usage-based overages). While seat-based pricing on its own doesn’t cut it, it can still make sense when combined with other structures to create a hybrid model.
AI pricing moves fast. Your billing system should too.
Legacy billing platforms were built for static subscriptions, not the dynamic, data-driven needs of AI products. They struggle to track real-time usage, they can’t support outcome-based pricing, and they aren’t built for rapid iteration or the complexity of hybrid pricing models.
That’s why Orb exists.
Orb was purpose-built to give AI teams full control over their pricing, from forecasting to rollout, while maintaining accurate billing. With Orb, you can:
Whether you’re optimizing for growth, margin, or product-market fit, Orb gives you the billing infrastructure to move fast and monetize strategically. Your pricing can evolve as quickly as your product, and your billing won’t hold you back.
If you’re still charging per seat, you’re anchoring your revenue to the wrong metric. AI products deliver value through automation, not headcount. Your pricing model should reflect that.
Orb gives you the tools to break free from legacy constraints and experiment with pricing that actually scales: usage-based, outcome-based, hybrid, or any other type of pricing model that fits with your product.
Book a demo with Orb and experiment with smarter pricing for your AI agents.
See how AI companies are removing the friction from invoicing, billing and revenue.