CommandBar

Dishing out startup advice for customer-obsessed founders

CommandBar makes a clever user assistant that’s powered by AI and can plug into any SaaS. The company also publishes excellent articles on product management, UX, and lessons for startups — and I jumped at the chance to write a piece for its blog.

AI prices could kill freemium pricing (but won’t)

Looking around the SaaS landscape, I noticed that most products launched in 2024 led with AI-powered functionality and a freemium pricing model.

That got me thinking about what it cost these fledgling companies to offer all their potential customers access to their AI features for free — and whether it was worth it as a customer acquisition strategy.

As it turned out, the freemium model is almost always a given for modern SaaS products. And while it can cost a pretty penny, it’s one of the best ways for businesses to find paying customers.

AI prices could kill freemium pricing (but won’t) (CommandBlogue) | PDF