Cavaco AI Outcome-Based Pricing Model

Transitioning from Software-as-a-Service (SaaS) to Results-as-a-Service (RaaS)

Executive Summary

The AI software market is shifting from “Seat-based” access to “Outcome-based” labor. Cavaco AI is positioning itself at the forefront of this trend by introducing a hybrid model that combines a predictable subscription base with a performance fee tied to attributed revenue.

Following the Shopify Model, we have introduced staff account (seat) limits to each tier. This ensures that even if a large company attempts to use a lower-tier plan, their need for team collaboration, multi-brand oversight, and role-based permissions will naturally trigger an upgrade to the appropriate scaling tier.

Strategic Value Proposition

Aligned Incentives

Cavaco charges for “realized” revenue, reducing adoption barriers while capturing significant upside as clients grow.

Expansion Triggers

By gating seats (Staff Accounts), we mirror the “Rule of 40/60” efficiency benchmarks, ensuring that larger teams with higher coordination overhead contribute more to the platform’s recurring revenue (ARR).

Defensible Margins

The combination of seat floors and AI Token Allowances ensures that our compute costs (benchmarked at 40-60% for AI natives) are always offset by the client’s commitment level.

Comprehensive Pricing & Entitlement Matrix

Feature Basic Essential Professional Pro Plus Enterprise
Target Segment Solo Founders Small Teams Scaling Orgs Agencies Global Ent.
Annual GMV Range < $1M $1M – $10M $11M – $25M $25M – $50M > $100M
Monthly Sub (Annual) $49 $99 $299 $2,300 $32,200
Performance Fee (%) 10.0% 7.0% 5.0% 3.0% 2.0%
Performance Fee Cap $1,000 $5,000 $15,000 $50,000 Custom
Seats (Staff Accounts) 1 Seat 5 Seats 15 Seats 50 Seats Unlimited
Monthly AI Tokens 1M 5M 15M 50M Unlimited
Contacts Included 1,000 5,000 25,000 100,000 500,000+
Monthly Email Sends 5,000 50,000 250,000 2,000,000 Custom
Monthly SMS Sends 1,000 5,000 25,000 100,000 Custom
Organic Social Posts 30 150 500 Unlimited Unlimited
AI Ad Creatives 10 50 200 1,000 Unlimited
Site Traffic (MAU) 5,000 25,000 100,000 500,000 1,000,000+

Financial Modeling: Revenue Potential & Unit Economics

Inputs
Platform default: 12.5%
Output
Monthly GMV
Attributed Revenue
Raw Performance Fee
Monthly Cap
Monthly Billed Fee
Monthly Subscription
Annual Contract Value
Formula Applied
Tier Reference
TierMonthly SubPerf. Fee %Monthly Cap

Growth Logic & Market Positioning

  • The Shopify Logic: By gating seats at 1, 5, and 15, we enforce segmentation. A $50M agency cannot operate on a 1-seat Basic plan; they require the “Pro Plus” tier for its 50 seats and multi-brand permissions.
  • “Success Churn” Protection: Our Performance Fee Caps ensure that even at peak performance, Cavaco remains 50–70% more cost-effective than a human hire (~$110k–$150k fully loaded).
  • Infrastructure Overage Protection: Benchmarks show high-usage agents burn 5M–10M tokens monthly. Our tiered token allowances protect our margins, while our $10/1M token pack model captures upside from power users.
  • Attribution Rigor: To secure Enterprise ACVs of $500k+, Cavaco will utilize a Multi-Touch (W-Shaped) Attribution model. This provides the “Proof of Value” required to justify performance-based fees during budget audits.
Person Walking In Office Looking At Tablet

Summary for Investors

This model targets a Rule of 60 performance benchmark. By layering seat counts on top of an outcome-based variable fee, we provide:

  • Segment Enforcement

    Seat limits act as a guardrail against large companies “under-paying” on low tiers.

  • Predictable Floors

    Seat-based subscriptions provide the stable ARR core that drives valuation multiples (benchmarked at ~7x-30x for AI niches).

  • Expansion ROI

    As clients grow their team (seats) or their revenue (attributed %), Cavaco’s revenue expands automatically, leading to superior Net Revenue Retention (NRR).

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