Definition

Share-in-Savings Pricing

An enterprise pricing model in which the vendor receives a percentage of the measurable cost savings or revenue gains the client achieves as a result of the vendor's product or service, rather than charging a flat rate for access or usage. The model is common in management consulting and operational efficiency contexts, and is emerging in enterprise AI. It aligns vendor and client incentives by making the vendor a financial stakeholder in the outcome, not just a supplier of inputs. The tradeoff: the vendor accepts lower upfront revenue in exchange for a share of a larger future value creation. David Carmel's preferred DataRockit pricing structure combines an upfront setup fee with share-in-savings plus a monthly support fee.

From the episode “The $1.5 Trillion AI Problem Nobody Talks About Until Now”

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The $1.5 Trillion AI Problem Nobody Talks About Until Now

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