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Launch HN: Skope (YC S25) – Outcome-based pricing for software products

17•benjsm•1h ago
Hi HN, we’re Ben and Connor, the co-founders of Skope (https://www.useskope.com/), a billing system that supports outcome-based pricing for software—that is, which charges your customers only when your software actually works. We’re an alternative to Stripe Billing, Orb, and Metronome that natively supports this pricing model, because we believe it’s especially needed for the AI products which are flooding the market and that will continue to be built in the future.

Here’s a demo video: https://www.youtube.com/watch?v=ORxhACQbu64

Prior to working on Skope, we built AI agents that fundraised for nonprofits. We weren’t able to find our stride within the nonprofit world, one reason being that there was no incentive for a nonprofit (with an already small budget) to take on the risk of buying expensive software claiming to replace humans at a high upfront cost, without proving its value first.

Instead, they should’ve been able to pay every time our product really worked (in this case by securing a donation or booking a meeting). With this model, we wouldn’t profit off of nonprofits with a mediocre product. At the same time, we’d give ourselves more upside if what we were selling truly did its job. All while taking all the risk off of our buyers.

Although we really wanted to, there was no easy way to make this happen at scale. It would have had to rely on trust, and depend on every single customer reporting each outcome quickly and accurately. Not the best recipe.

So, we decided to build it…which turned out to mean rebuilding billing from scratch. But we think a world where people pay for software doing its job is a good one, in which case outcome-based pricing will catch on, but don’t think it’ll happen overnight. There are a ton of wrinkles to figure out still. In the meantime, we’ve also built the rails to support traditional subscriptions and usage/credit based models with a focus on making iteration on price really easy.

How it works: Our users can easily track customer usage through units (like tokens consumed or emails sent) and set pricing rules such as the price of each unit or a limit for usage per month. These pricing rules are designed to be flexible items that can be modified easily for each customer. Usage is recorded as events uploaded via our API/SDK, which are mapped to pricing rules for accurate, immutable billing calculations. Invoices are automatically generated at the end of each billing period based on the events logged during the given period. We are working to develop integrations with LLM observability platforms such as Helicone and Langfuse to make it easy to record customer usage data. Finally, we make it easy to collect payments via Stripe (disconnected from Stripe Billing).

For outcomes specifically, we’re working on acting as a middle layer between our customers and their users. The same process for setting prices and units follows as said before, but we’ll have access to both our users’ and their customers’ systems of record to verify that these outcomes actually happened. We built a customer portal so that once outcomes are verified by us, the customer can see and validate them as they happen. If a customer of a company using Skope, wants to dispute a charge, we plan to handle it ourselves through the platform. Transparency and trust are really important between all parties within this model, so we want to do everything possible to encourage that.

We really like the outcome-based model because it encourages truly good software and aligns incentives between buyers and sellers. We think that the bar for software will become higher as more companies adopt it and it’ll lead to cool things. At the same time, neither buyers nor sellers can pull a fast one on the other to get a better deal. It’s similar to Google Ads, which introduced pay per click pricing to online advertising for the first time. We’re trying to make it possible for the entire software industry to come into the pay per performance realm, just like Google did over 20 years ago.

We’re rolling out at a flat subscription price. Counterintuitively, we don’t think the outcome-based model makes sense for Skope itself. A billing product isn’t one that “may or may not work”, it needs to just work.

The way AI companies do business needs new billing infrastructure, and that's what we’re working to provide. We have a ton to learn and are eager to hear how others see the future playing out.

Please let us know if you have any thoughts on things you’d like to see. Always excited to riff on this and we’d absolutely love your comments!

Comments

serjester•1h ago
Congrats on the launch guys, but is this any different from setting up usage based pricing in stripe? This kind of seems like a solution in search of a problem.
connorpark24•1h ago
We've designed our platform to use a smaller set of primitives than Stripe Billing (no Meters + Subscriptions + Prices + Rate Cards), making it easier to configure, and more friendly for non-technical users. For outcome-based pricing, we are able to provide greater transparency than Stripe in displaying the specific outcomes achieved and the context for each of them.
mushufasa•1h ago
This sounds really great in concept.

I don't see detail here. As someone who would be interested in using this, can you clearly explain how you will measure and track the outcomes? That's the key detail that matters.

Relying on customers to self-report is not sufficient, and an automated self-report-system is not a true improvement.

benjsm•56m ago
Thank you! To define the outcomes, it will be up to our customer and their users to state precisely what an outcome is and how it will appear. Once we have that information, we sync into their systems of record and act as that verification layer. It’s not an automated self-report-system, because they don’t have to report anything. As the work gets completed successfully (ie, a meeting booked or a customer support ticket closed) we will see it, verify it and bill it in realtime.

Would love to chat as well (ben@useskope.com) if you have any questions specific to your use case. May be able to give a better answer, as the nuance really varies by use case.

abxyz•1h ago
Outcome-based billing is interesting. I think some people may balk at the idea of trusting customers to self-report their outcomes but self-reporting already happens often in enterprise billing. A customer can defraud their service providers by underreporting but the risk to their relationship with the service provider is rarely worth it (if the service isn't delivering value, drop it, if the service is delivering value, the fees are worth it). SaaS companies are already regularly writing off unpaid bills. That said...

https://www.useskope.com/resources/why-now

"Salesforce, Sierra, Zendesk, and Intercom are a few of the early movers in adopting an outcome based model. Their definitions of a 'successful outcome' vary from simply facilitating a conversation (Salesforce) to completing a customer support query with no human elevation needed (Sierra)."

"Chargeflow is another company that automates the process of collecting revenue and preventing chargebacks for ecommerce, which has adopted this model. They take 25% of each recovery and charge $39 for each chargeback prevention. Their pricing page explains the idea perfectly: success first, pay second."

Are these examples of "outcome-based billing" or just the redefinition of usage and/or fees as an "outcome"? "Facilitating a conversation" and "completing a support query" are not trust-based outcomes, that's just usage. A thing happened within the service's boundary. Stripe's usage based billing (and Orb etc.) can be used for this already.

I guess you are in a tough position because you are trying to provide real world examples of a category you are hoping to define, but in this case, perhaps it's best to wait for some clear real world examples instead of muddying the waters like this. I fear that reading this, most people would conclude that outcome-based billing is just a way to define your usage-based pricing, rather than something that needs a platform like Skope.

connorpark24•49m ago
This is a totally valid concern - we believe that outcomes cannot be treated the same as "usage events". Facilitating trust between a seller and a buyer requires that the buyer can see exactly what they are being billed for. Existing platforms ingest event data, but only display it back to their users' customers in the form of an aggregated summary (ex. 500 API calls), rather than the specific details of each event. We believe that this approach works for granular usage data, but not outcomes. Hope this helps!
tomjohnneill•43m ago
I'd be very interested to hear more about how the non-for-profit agents platform went/anything else you learnt.
benjsm•39m ago
It’s a really tough time for non-profits. Large amounts of their funding was cut, which is genuinely impacting their day-to-day. Employees work long hours and are not paid well. Turnover rate is really high. It’s just a really hard industry right now.
tomjohnneill•24m ago
Did the agents you built work? I think we're doing something similar in the UK and intrigued to know how it went for you (https://www.plinth.org.uk)

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