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SaaS pricing correction: hybrid billing winning over pure usage-based.

Per-seat share fell from 21% to 15% of SaaS in 12 months as agents "don't hold licenses," but pure usage-based billing is now showing cracks (declining.

Enterprise DNA | | via Harvest podcasts: The Series A Show, SaaS Scaled
SaaS pricing correction: hybrid billing winning over pure usage-based.

AI Pulse · Business Models & Winners

The play

Price with a hybrid model, seat or platform fee plus usage overage, pure usage-based is losing to hybrid at 41 percent SaaS adoption.

Pure per-seat pricing is losing ground fast in SaaS. A year ago, 21% of companies billed that way. Now it’s 15%. The reason is simple: AI agents don’t hold licenses. You can’t charge per seat when half your “users” are bots running workflows overnight.

But the pivot to pure usage-based billing, the model everyone rushed toward, is already showing cracks. Two problems are colliding. First, the marginal cost of compute keeps falling. If your pricing is tied to API calls or tokens and those get cheaper every quarter, your revenue shrinks even as usage climbs. Second, enterprise buyers hate unpredictable bills. CFOs want a number they can budget around, not a variable line item that swings 40% month to month because someone ran a batch job.

The model that’s actually winning right now is hybrid: a platform fee or seat baseline, plus usage overages. According to [The Series A Show and SaaS Scaled podcasts from Harvest](no URL provided), 41% of SaaS companies have moved to this structure. It gives customers predictability and vendors a floor. You’re not penalized when compute gets cheap, and you’re not leaving money on the table when a customer scales hard.

This matters if you’re pricing any AI product. Don’t default to usage-based just because it sounds modern. Hybrid works because it aligns with how companies actually buy and budget. If you’re building something like an AI command centre, the pricing conversation should start with outcomes and capacity, not tokens. A fixed platform fee covers the infrastructure and agent orchestration. Usage tiers handle scale. The customer knows the base cost, and you capture upside when they grow.

The SaaS pricing correction isn’t theoretical anymore. It’s happening in contracts right now, and it’s worth watching if you’re selling anything with AI in the stack.

More like this?

Source

Harvest podcasts: The Series A Show, SaaS Scaled

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