It's basically a remix of the performance advertising model. They can charge more for a model like this than the standard pay-per-seat license.
Quick recap: A month after Salesforce’s launch of Agentforce, an autonomous AI suite, the company’s new pricing model is making waves. Unlike the traditional cost-per-seat model, the company now charges $2 per conversation, with discounts for higher volumes. This performance-based model is reshaping how businesses pay for SaaS, focusing on impact rather than just access to tools.
- Agentforce allows businesses to deploy AI agents that autonomously handle tasks like answering customer service inquiries, qualifying sales leads, and optimizing marketing campaigns—reducing the need for human intervention.
Why it matters: Businesses are becoming more budget-conscious, and Salesforce’s pricing shift comes at a time when companies are looking for better ROI on their software investments. Instead of paying for software licenses that might not be fully utilized, businesses can now pay based on the actual results AI agents deliver.
A Performance-Based Approach: Geoffrey Colon, a marketing expert and former head of brand studio at Microsoft, sees this as a natural evolution for the industry: "So if the SaaS makes an impact, you pay for those results. It's basically a remix of the performance advertising model. They can charge more for a model like this than the standard pay-per-seat license."
Colon also noted that the SaaS market is now catering to two distinct audiences—large enterprises and a rapidly growing group of SMBs and freelancers.
"You have two audiences for SaaS right now, which will make it interesting. You still have enterprise companies, but they are feeling tightness in spend with slashed budgets and revenue pressure. You then have a larger audience and one that will continue to expand: SMBs and new business entrepreneurs and/or side hustlers. This has grown post-pandemic as people have been laid off and/or people look to get out of working for 'the man.'"
A key driver for SaaS growth: The SMB sector will be crucial for SaaS growth, as these businesses increasingly look for solutions that help them scale efficiently, says Colon.
"What will be interesting here is this segment is made up of people who are consumers while also trying to build the next generation of brands. They purchase SaaS based on what helps them. This is why Canva has done well with SMBs. It's probably 95% of their buying audience."
Salesforce, with its performance-based pricing model, appears well-positioned to capture this expanding SMB segment, offering a flexible, cost-effective solution that adapts to their evolving needs.
Colon also pointed out the broader shift in the workforce, noting that the rise of freelancers and gig workers will likely increase demand for SaaS products like Agentforce.
"The projections are that 51% of all workers will be freelance in the next two years. We're starting to see this happen now as the big layoffs won't lead to large hire backs of full-time employees but more consultant, contract, and temporary or 1099 roles."
The bottom line: By focusing on performance-based pricing, Salesforce is ensuring companies pay for what they actually use, which could set a new standard in the industry. For businesses looking to scale efficiently, especially SMBs and freelancers, this model offers a more flexible, cost-effective solution for managing growth.
