How to set usage-based pricing for AI services

from Kisang Pak’s sessionsProcessed $1B+ in subscriptions

Learn how to create a clear, scalable, and profitable usage-based pricing model for AI services. This guide covers how to:

Choose the right billing metric, such as tokens, API calls, generated images, processing time, or completed tasks.
Calculate model, infrastructure, storage, and support costs.
Set competitive rates while protecting your profit margins.
Design pricing tiers, included usage, overage fees, and volume discounts.
Make costs predictable and transparent for customers.
Monitor usage patterns and adjust pricing as your service scales.

Whether you’re launching an AI API, agent, automation platform, or generative AI product, these practical strategies will help you align pricing with customer value and build a sustainable business model.