Consumer AI Product Strategy

Revenue Models#

1. Subscription-Based

   • Monthly/annual recurring revenue
   • Tiered pricing structures
   • Family or team plans
   • Annual commitment discounts

2. Usage-Based

   • Pay-per-use models
   • Credit/token systems
   • Usage tier pricing
   • Enterprise volume discounts

3. Advertising-Supported

   • Free with ads
   • Premium ad-free options
   • Sponsored features
   • Data monetization (with consent)

Pricing Strategy Considerations#

1. Competitive Positioning

   • Market rate analysis
   • Value-based pricing
   • Psychological pricing thresholds
   • Promotional pricing strategies

2. Customer Lifetime Value

   • Retention-focused pricing
   • Upsell and cross-sell opportunities
   • Churn reduction strategies
   • Loyalty program integration