Pricing your AI product: Lessons from 400+ companies and 50 unicorns | Madhavan Ramanujam

In this episode of Lenny's Podcast, Madhavan Ramanujam discusses key lessons from his new book, "Scaling Innovation," focusing on how companies can achieve profitable growth by mastering both market share and wallet share. He emphasizes the importance of pricing strategy, especially for AI companies, advocating for early monetization and outcome-based pricing models. Madhavan shares strategies for effective negotiation, avoiding common traps, and adapting pricing in the AI era, highlighting the need for AI companies to capture the value they bring from day one. He also introduces a 2x2 framework for selecting the right pricing model based on attribution and autonomy, and offers actionable advice for founders to build enduring businesses.