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BDR-0004 – AI Squads Pricing Model

  • Type: Business Decision
  • Status: Accepted
  • Date: 2026-01-01
  • Owner: Dmitry
  • Related Areas: Business Model / Pricing / Squads / Product

This decision document defines the pricing model for AI Product Squads. It is written for product managers, sales, and anyone defining ConnectSoft's squad offerings.

Decision

Squad subscription tiers with outcome-based scope. Define 3-4 standard squad configurations with predefined pricing and monthly output guarantees. Price bundles that internally translate to agent capacity, not per-agent like humans. This prevents unrealistic expectations about "hours" or "availability."

Context

We're introducing "AI Product Squads" — virtual teams of agents that customers can "hire" (e.g., "3 developers, 1 DevOps, 2 PMs"). We need to decide on the pricing model.

Options considered:

  1. Price per agent (like hiring humans)
  2. Price per outcome (microservices/epics delivered)
  3. Squad subscription tiers (predefined configurations)
  4. Usage-based credits
  5. Hybrid models

Decision

Squad subscription tiers with outcome-based scope.

  • Define 3-4 standard squad configurations (Starter, Growth, Platform, Integration)
  • Each tier has predefined agent composition and monthly output guarantees
  • Price as monthly subscription with minimum commitment (3-6 months)
  • Scope tied to outputs (microservices/epics/integrations per month), not hours
  • Optional "Build Your Own Squad" configurator that maps to tiers internally

Don't price per agent like humans — this leads to unrealistic expectations about "hours" and "availability."

Rationale

  • Easy to Understand: "This squad delivers X microservices + Y epics per month" is clearer than "3 dev agents at X€ each"
  • Outcome-Focused: Aligns with customer value (they want outcomes, not agent-hours)
  • Scope Control: Clear monthly budgets prevent unlimited scope traps
  • Scalable: Predefined tiers are easier to sell and support than custom configurations
  • Flexible: Configurator allows customization while maintaining internal predictability

Consequences

Positive Consequences

  • Clear value proposition (outcomes, not hours)
  • Easier to sell (CTOs understand "squad that delivers X/month")
  • Scope control (prevent unlimited work)
  • Scalable pricing model
  • Can still offer customization via configurator

Negative Consequences / Risks

  • Need to accurately estimate agent capacity and throughput
  • Risk of underestimating complexity (need clear scope definitions)
  • Customers might expect "always-on" agents (need to manage expectations)
  • Pricing might need adjustment as we learn actual costs

Mitigation

  • Start conservative with output guarantees
  • Include "subject to complexity" clauses
  • Clear scope definitions and change management process
  • Regular review and adjustment of tiers based on actual performance
  • Transparent dashboards showing agent activity and deliverables

Squad Tiers Defined

  1. Starter SaaS Squad - 1 microservice + 2 epics/month, 3-month minimum
  2. Growth SaaS Squad - 2 microservices + 4 epics + 1 integration/month, 6-month minimum
  3. Platform Squad - Platform capabilities + governance, premium retainer
  4. Integration & AI Bot Squad - 2 integrations + AI bots/month, monthly subscription

Follow-up Work Required

  • Finalize pricing for each tier
  • Create squad configurator UI/flow
  • Define scope change process (how to handle overages)
  • Create customer dashboards for squad activity
  • Develop SLAs for each tier