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. Madhavan emphasizes the importance of pricing and monetization strategies, especially for AI companies, which need to focus on value capture from day one due to cost dynamics and the ability to solve the attribution problem. He shares strategies for simple pricing, effective negotiation, and navigating POCs, highlighting the need for AI companies to move towards outcome-based pricing models to unlock pricing power. The conversation also covers common traps founders fall into, the importance of understanding customer KPIs, and the need to adapt pricing strategies in the fast-evolving AI landscape.