Tag

#unit economics

3 posts tagged.

Pricing

Pricing your AI app: 3 ladders that converted at over 7%

Three pricing ladders beat flat per-seat pricing for AI products in our teardown of 40 launches: a credit ladder, a usage-with-floor ladder, and an outcome ladder. Each cleared a 7%+ trial-to-paid rate by aligning the price metric with the value metric and putting a visible cap on downside. Pick the ladder that matches how your users feel cost — tokens, runs, or results — and price the rung, not the seat.

9 min read4
AI cost

True cost of running an LLM workflow in 2026

The sticker price per token is the smallest line in your LLM bill. Once you add retries, embeddings, vector reads, orchestration, and the platform margin, a "simple" agent workflow lands around $0.42 per run — roughly 4× the raw model cost. This breakdown shows where the money actually goes and which three levers cut a workflow bill the fastest without touching quality.

8 min read5
Unit economics

Effective hourly rate: the only freelance metric that matters

Your headline rate is a vanity number. Your effective hourly rate — total income divided by every hour the business consumed, billable or not — is what you actually earn. For most freelancers it lands 35–55% below the rate on their invoice once you count admin, sales, and unbilled rework. This piece shows how to compute it, why it's always lower than you think, and the three moves that raise it without raising your rate.

7 min read7