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  • Writer's pictureNikhil Kotcharlakota

Outcome-based Pricing

Outcome based Pricing model can be very impactful.

With outcome-based pricing, you essentially only get paid when you deliver an agreed-upon outcome.

One of the biggest challenges with outcome-based pricing is defining what an outcome is and quantifying it. As revenue is based on outcome, it can also be difficult to predict.

The outcome-based approach can be applied to several industries. A good example of outcome-based pricing is business consulting. By doing so, the consultants are responsible for delivering value and extracting value, and only then do they get paid.

It is also possible to price SaaS platforms or tools based on their outcomes. In the last few years, usage-based pricing has become pretty prevalent, but I think outcome-based pricing is the next step.



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