Framework · 2 notes · discussed by Eoghan McCabe, Lenny Rachitsky

Outcome-Based Pricing

Every note in the archive that names Outcome-Based Pricing: summaries, key takeaways and links to the original essays, episodes and posts. Ask a question below to get a cited answer from just these notes’ authors.

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Lenny’s Podcast91 min

How Intercom rose from the ashes by betting everything on AI

Eoghan McCabe · Aug 21, 2025
Key learnings
  • When growth stalls in a late-stage SaaS business, cut costs hard and pick one clear strategic lane instead of trying to serve…
  • Simplify and fairly price your product even at short-term revenue cost; McCabe gave away roughly $50M ARR to replace confusing…
  • Price AI products on outcomes that align with customer value, like charging 99 cents per resolved ticket, rather than on the…