Note to listeners: The English version of this episode was generated using AI translation from the original Hebrew recording. Minor inaccuracies may occur.

For years, the subscription model was the standard for most SaaS companies, relying on relatively low technology costs per user and high profitability. The massive entry of AI technologies into software products has changed this equation, with every LLM call generating a significant, variable cost. This reality forces the industry to redefine pricing and business models, adapting them to an era of consumption.

In this week’s episode, Darya Wertheim speaks with Roy Mann, Co-Founder and Co-CEO of monday.com, about this fundamental shift and how product companies must rethink their pricing and business models. We explore how to build a business model that aligns the value the user receives with the price they pay, addressing the conflict of interest between company and customer when pricing a product as a percentage markup over AI provider costs—where optimization that lowers usage costs simultaneously cuts company revenue, creating a negative incentive for product efficiency.

Roy and Darya discuss a spectrum of business models, ranging from a markup over provider costs to Forward Deployed Engineers (FDE) working directly with users, as well as the middle-ground options that provide stability for the customer while still capturing the value delivered by application software.

Note to listeners: The English version of this episode was generated using AI translation from the original Hebrew recording. Minor inaccuracies may occur.
For years, the subscription model was the standard for most SaaS companies, relying on relatively low technology costs per user and high profitability. The massive entry of AI technologies into software products has changed this equation, with every LLM call generating a significant, variable cost. This reality forces the industry to redefine pricing and business models, adapting them to an era of consumption.
In this week&rsquo;s episode, Darya Wertheim speaks with Roy Mann, Co-Founder and Co-CEO of monday.com, about this fundamental shift and how product companies must rethink their pricing and business models. We explore how to build a business model that aligns the value the user receives with the price they pay, addressing the conflict of interest between company and customer when pricing a product as a percentage markup over AI provider costs&mdash;where optimization that lowers usage costs simultaneously cuts company revenue, creating a negative incentive for product efficiency.
Roy and Darya discuss a spectrum of business models, ranging from a markup over provider costs to Forward Deployed Engineers (FDE) working directly with users, as well as the middle-ground options that provide stability for the customer while still capturing the value delivered by application software.

Startup for Startup is a podcast in which we at monday.com openly share knowledge, experience, and actionable insights among startups. Each episode of the podcast highlights a different challenge we faced on our journey as a growing startup.

Startup for Startup is a podcast in which we at monday.com openly share knowledge, experience, and actionable insights among startups. Each episode of the podcast highlights a different challenge we faced on our journey as a growing startup.