Monetizing AI — Alvaro Morales, Orb
Jul 23, 2025 · 18:18
Alvaro Morales, CEO of Orb, argues that traditional subscription-based SaaS pricing fails for AI products due to rapid cost fluctuations, margin pressures, and customer demand for clear ROI. He presents three frameworks: decide between direct monetization (add-on, bundled) or indirect (free to drive upsells) using examples like GitHub Copilot, Notion AI, and Expedia; select a value metric from resource-based tokens (Vercel's v0) to task-based (Zapier) to outcome-based pricing (Intercom's Fin at $0.99 per resolved ticket); and embrace continual experimentation, as AI pricing cycles shrink from years to months. To reduce pricing guesswork, Orb built Simulations, a tool that lets companies backtest alternate pricing strategies on real usage data from closed betas before launch, helping teams like Replit and Perplexity optimize revenue without risking customer trust.
