Selling AI workers "taps into existing hiring budgets, often 5-10x larger than software budgets. Instead of competing for the IT budget, these companies target open headcount.
The value proposition is clear. There's no need to explain complex technical features when you can say "same output, 80% cheaper, available now.'"
When you're selling digital workers ($50k/year) instead of software per seat ($20/user/month), it's not hard to imagine how the next trillion dollar software company will be built.
If the shift to outcome-based pricing plays out as you suggest, B2B sales models will need a fundamental reset—engagement, compensation, processes, and skill sets will all have to evolve.
This shift, combined with the DeepSeek disruption, could also upend how tech companies make money. Big Tech built its dominance by monetizing network effects and economies of scale. They’re trying to extend that model to AI, but what happens if AI Agents and outcome-based pricing break that paradigm?
If my AI agent generates significant outcomes for customers, does it matter how many people use it? If I drive more revenue and margin per customer, scale starts looking very different.
Does this flip the model? Instead of maximizing users, could the highest-value AI companies be the ones selling specialized agents to fewer companies—but earning more based on outcome? Do we want to be operating like airlines, pricing and competing on thin margins, or like private jet businesses, offering high-value, high-margin services?
Brilliant post. Its all in the approach of how to sell AI to Enterprise. Talk their language
Thanks Rupesh for the feedback. There is a tippping point coming in B2B sales that will become more outcome oriented. Exciting times
Great post!
Selling AI workers "taps into existing hiring budgets, often 5-10x larger than software budgets. Instead of competing for the IT budget, these companies target open headcount.
The value proposition is clear. There's no need to explain complex technical features when you can say "same output, 80% cheaper, available now.'"
When you're selling digital workers ($50k/year) instead of software per seat ($20/user/month), it's not hard to imagine how the next trillion dollar software company will be built.
Great work!
Good post, Todd.
If the shift to outcome-based pricing plays out as you suggest, B2B sales models will need a fundamental reset—engagement, compensation, processes, and skill sets will all have to evolve.
This shift, combined with the DeepSeek disruption, could also upend how tech companies make money. Big Tech built its dominance by monetizing network effects and economies of scale. They’re trying to extend that model to AI, but what happens if AI Agents and outcome-based pricing break that paradigm?
If my AI agent generates significant outcomes for customers, does it matter how many people use it? If I drive more revenue and margin per customer, scale starts looking very different.
Does this flip the model? Instead of maximizing users, could the highest-value AI companies be the ones selling specialized agents to fewer companies—but earning more based on outcome? Do we want to be operating like airlines, pricing and competing on thin margins, or like private jet businesses, offering high-value, high-margin services?