Building a Consumption-Ready Revenue Machine: Thoughts from A16Z

A16Z shared a detailed LinkedIn post yesterday about how the usage-based pricing model changes the way the entire organization operates. Here’s the full post if you want to read it.

I was going to share something similar as a wrap up for the series we started last week -on Building a consumption ready revenue machine - after going into the details for each of these functions. But the post has sparked some healthy debates among teams around whether or not usage-based pricing will survive, how sales comp and quotas change with this pricing model, how you align incentives across the org. So this is as good a time as any to share this high-level overview from Scott Woody, CEO at Metronome on how each org function needs to change to support a revenue model that only works if customers actually use the product and are incentivized to use more of out to drive outcomes for themselves.

Here’s what I shared on what we have discovered from conversations with folks like you on this topic.

Last week we touched on how you can get your data ready to make it work for a usage or outcome based pricing model. In the subsequent posts, we’ll go into details of how each of these functions need to change to adapt to the new pricing model.

As always, I love hearing from you. If you have any thoughts or questions on this topic, please reach out or book some time here: cal.com/chandrika