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Listen "Pricing as Product: The Monetization Operating Model in Action"
Episode Synopsis
In this episode of Unpack Pricing, Scott Woody, co-founder and CEO of Metronome, is interviewed by Chris Kent, SVP Marketing at Metronome.
Scott Woody examines AI's transformation of software from seat-based access to agentic work performance, ushering in a "third era" demanding consumption-based pricing. Unlike monopolistic power companies, customers now require visibility, control, and predictability in billing. Woody critiques Silicon Valley's product obsession while neglecting monetization as a core discipline, advocating for marrying sales-led and product-led growth. He predicts monetization will become essential for AI-native business success.
FULL TRANSCRIPT AVAILABLE HERE: http://metronome.com/podcast/unpack-pricing/pricing-as-product-the-monetization-operating-model-in-action
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LinkedIn/Twitter
Follow:
Scott:
https://x.com/l3ammhttps://www.linkedin.com/in/scott-woody-21677121/
Chris:
https://x.com/_chriskenthttps://www.linkedin.com/in/the-chris-kent/
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Check out:
Metronome: https://metronome.com/
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Timestamps:
(00:00) Intro
(01:48) The epochal shift in software pricing that motivated the white paper
(02:41) How AI is fundamentally transforming software value from access to work
(03:01) The three distinct eras of software pricing throughout history
(05:32) How AI agents performing work ushers in the third era of pricing
(07:25) Whether companies or customers are driving the shift to usage-based pricing
(09:02) How 15 years of AWS usage educated customers about consumption models
(10:33) The challenges facing companies transitioning from the access era
(13:00) How every department except HR is affected by the monetization shift
(14:45) How successful companies navigate the cross-functional transformation
(16:05) The dangers of changing monetization models too quickly
(16:31) The smart strategy of launching new AI-native product lines
(18:49) The Dropbox revelation about treating pricing as a product
(20:00) How companies without proper monetization are essentially running charities
(22:59) The three critical pillars of successful usage-based pricing
(23:19) Power companies as an example of terrible usage-based pricing
(27:31) What happens when AI companies get pricing visibility wrong
(31:16) The massive infrastructure requirements for billing at scale
(33:19) Metronome's vision to become the AWS of monetization
(36:55) How billing complexity can catch companies off guard during growth
(40:28) The monetization operating model framework
(44:39) The challenge of marrying sales-led and product-led growth
(45:58) Advice to founders about achieving pricing product market fit
(48:54) What will become obvious about monetization in five years
(50:32) How pricing becomes the primary competitive battlefield
(51:23) Wrap
Scott Woody examines AI's transformation of software from seat-based access to agentic work performance, ushering in a "third era" demanding consumption-based pricing. Unlike monopolistic power companies, customers now require visibility, control, and predictability in billing. Woody critiques Silicon Valley's product obsession while neglecting monetization as a core discipline, advocating for marrying sales-led and product-led growth. He predicts monetization will become essential for AI-native business success.
FULL TRANSCRIPT AVAILABLE HERE: http://metronome.com/podcast/unpack-pricing/pricing-as-product-the-monetization-operating-model-in-action
__
LinkedIn/Twitter
Follow:
Scott:
https://x.com/l3ammhttps://www.linkedin.com/in/scott-woody-21677121/
Chris:
https://x.com/_chriskenthttps://www.linkedin.com/in/the-chris-kent/
--
Check out:
Metronome: https://metronome.com/
--
Timestamps:
(00:00) Intro
(01:48) The epochal shift in software pricing that motivated the white paper
(02:41) How AI is fundamentally transforming software value from access to work
(03:01) The three distinct eras of software pricing throughout history
(05:32) How AI agents performing work ushers in the third era of pricing
(07:25) Whether companies or customers are driving the shift to usage-based pricing
(09:02) How 15 years of AWS usage educated customers about consumption models
(10:33) The challenges facing companies transitioning from the access era
(13:00) How every department except HR is affected by the monetization shift
(14:45) How successful companies navigate the cross-functional transformation
(16:05) The dangers of changing monetization models too quickly
(16:31) The smart strategy of launching new AI-native product lines
(18:49) The Dropbox revelation about treating pricing as a product
(20:00) How companies without proper monetization are essentially running charities
(22:59) The three critical pillars of successful usage-based pricing
(23:19) Power companies as an example of terrible usage-based pricing
(27:31) What happens when AI companies get pricing visibility wrong
(31:16) The massive infrastructure requirements for billing at scale
(33:19) Metronome's vision to become the AWS of monetization
(36:55) How billing complexity can catch companies off guard during growth
(40:28) The monetization operating model framework
(44:39) The challenge of marrying sales-led and product-led growth
(45:58) Advice to founders about achieving pricing product market fit
(48:54) What will become obvious about monetization in five years
(50:32) How pricing becomes the primary competitive battlefield
(51:23) Wrap
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