Outcome-Based Pricing

Definitions

1. A pricing model where fees depend partly or fully on the results the customer achieves, such as savings delivered, revenue generated, or performance targets met. It can align incentives strongly but is harder to measure and contract cleanly.

   In plain English: Pricing based on the results delivered instead of just access or usage.

   Example: "The startup proposed outcome-based pricing around fraud losses prevented rather than per-seat fees."

Related Terms

• ARR
• Metered Billing
• Annual Plan
• Pricing Model
• Seat-Based Pricing
• Stacking
• Subscription Model
• Under-Monetized
• Value Engineering