Traditional pricing models often fall short in capturing the value provided by digital labor and AI-driven solutions. Enter activity-based pricing, a flexible and results-oriented approach that is increasingly popular for selling digital labor and AI agents. This pricing model aligns costs with value delivered, making it an ideal choice for businesses seeking scalable and transparent solutions.
What Is Activity-Based Pricing? #
Activity-Based Pricing is a pricing model determined by the specific activities or tasks performed by the service or product. It is not based on flat rates, time, or subscription fees. It’s often used for selling digital labor and AI agents because these services are designed to conduct measurable, discrete tasks.
For instance, instead of paying a monthly fee, customers are billed based on measurable outcomes. It can be the number of leads generated, customer queries resolved, or documents processed.
Key Features of Activity-Based Pricing #
Activity-based pricing stands out due to its task-focused and results-oriented nature. Here are its key features:
| Feature | Description |
|---|---|
| Task-Driven Charges | Pricing is based on the number or complexity of tasks completed (e.g., leads generated or data processed). |
| Outcome-Based Billing | Customers pay for measurable results or deliverables rather than time spent. |
| Scalable Costs | Costs adjust based on the volume of activity, offering flexibility for fluctuating workloads. |
| Granularity | Charges reflect different activity levels or complexities, allowing tailored billing. |
| Transparency | Customers only pay for the value they receive, ensuring clear ROI justification. |
Why Activity-Based Pricing Fits Digital Labor and AI Agents #
Digital labor and AI agents excel at performing discrete, measurable tasks, making activity-based pricing a natural fit. Here’s why this model is becoming the go-to for these technologies.
| Benefit | Explanation |
|---|---|
| Aligns Costs with Value | Customers perceive fairness as they pay only for what the AI agent delivers. |
| Suits Modular AI Solutions | Task-specific AI agents (e.g., chatbots, forecasting tools) align well with activity-based billing. |
| Encourages Adoption | Lower upfront costs make it easier for businesses to try AI solutions without large commitments. |
| Promotes Efficiency | Providers are incentivized to optimize AI agents for maximum efficiency. |
There is no one-size-fits-all solution for pricing nor for responding to these shifts. However, we are beginning to see a number of archetypes emerge in the AI space, with a notable difference between those who are AI-native companies (e.g., Decagon, Cursor, ElevenLabs) and those who have added AI on top of existing core products (e.g., Zendesk, Notion, Canva). AI-native companies have leaned towards newer pricing models: usage (pay for what you consume), outcome (pay for what was delivered), or hybrid models (a combination). Decagon, for instance, offers per-conversation (usage-based) and per-resolution (outcome-based) pricing, while Cursor is seat-based with usage-based charges for premium models. Existing companies, meanwhile, have mostly stuck with per-seat or bundled options.
Makarov, Ivan, James da Costa, and Equals. “AI Is Driving a Shift Towards Outcome-Based Pricing.” a16z, Andreessen Horowitz, December 19, 2024, [URL].
Examples of Activity-Based Pricing in Digital Labor and AI #
Activity-based pricing is already revolutionizing how digital labor is sold. Here are a few examples of how it is applied:
| Use Case | Activity-Based Metric |
|---|---|
| AI-based Support Agents or Assistants | Charged per conversation or resolved query. |
| Lead Generation AI | Charged per qualified lead or outbound email sent. |
| Data Entry Automation | Charged per document processed or field extracted. |
| Forecasting AI | Charged per forecast or report generated. |
| Recruitment AI | Charged per candidate screened or interview scheduled. |
Why Customers Love Activity-Based Pricing #
The appeal of activity-based pricing lies in its ability to align costs with value while offering scalability and transparency. This model ensures businesses can get the next advantages:
| Advantage | How It Helps Businesses |
|---|---|
| Pay for Outcomes | Ensures payment reflects actual value received. |
| Scale Flexibly | Accommodates seasonal or fluctuating workloads without financial strain. |
| Optimize Investments | Encourages smarter allocation of resources to high-value activities. |
Activity-based pricing is transforming the way digital labor and AI agents are sold. By aligning costs with results, this model ensures businesses can embrace cutting-edge technology without overpaying. Activity-based pricing empowers businesses to adopt AI solutions tailored to their needs. It applies to “hiring” AI-agents for conducting specific measurable tasks. This approach may also maximize ROI.
If your business is considering providing or deploying AI-driven digital labor, think about adopting activity-based pricing. This approach could be the key to unlocking the full potential of digital workers.
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