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Outcome-Based Pricing: Pay for Results, Not Hours

Build software and AI systems under an outcome-based contract. A lower base fee covers the build, and a success fee is paid only when an agreed business metric is met, so we're invested in the same result you are.

Most software contracts pay vendors for effort, whether or not the system delivers value. Codersarts outcome-based pricing flips that. You pay a lower base fee to build and deploy, and a success fee only when an agreed business metric is met on live data: tickets resolved, documents processed, hours saved or cost reduced. The metric, baseline and target are written into the contract before we start, and a shared dashboard tracks results from day one. You spend less upfront, get a partner accountable for results rather than delivery alone, and have a business case your leadership can approve with confidence.

What Is Outcome-Based Pricing?

Outcome-based pricing is a model where what you pay is tied to the business results a solution delivers, not to the hours or effort spent building it. Instead of paying for time or for a fixed list of features, you pay a lower base fee plus a success fee when an agreed metric is achieved, such as tickets resolved, documents processed, hours saved or cost reduced.


Traditional software pricing puts most of the risk on the buyer: you pay whether or not the system creates value. Outcome-based pricing shares that risk. When we only earn the full fee by hitting your target, we design, build and tune the system to hit it.


Codersarts offers outcome-based pricing for AI agents, automation and software systems that improve a measurable, high-volume process.



Outcome-Based Pricing Models

There are four common outcome-based pricing models. We help you choose the structure that fits your process, data and risk appetite.


1. Base Fee + Success Fee

The most common model. A reduced base fee covers discovery, build and deployment. A fixed success fee is paid when the agreed metric reaches its target within the measurement window.


2. Gain Sharing Model

You share a percentage of the verified savings or revenue gains the system produces, for a defined period. Gain sharing works best when the financial impact can be measured cleanly, for example cost per invoice or hours of manual work removed.


3. Output-Based Pricing

You pay per unit of output: per document processed, per ticket resolved or per qualified lead. The output-based pricing model suits high-volume automation with a clear unit of work.


4. Risk Sharing Contract

Both sides put part of their return at risk. You pay less if targets are missed, and a premium if they are exceeded, within an agreed cap. This model is typical for larger transformation programmes.




What Is an Outcome-Based Contract?

An outcome-based contract is the written agreement that defines how results are measured and paid. Every Codersarts outcome-based contract includes:

  • Metric definition: exactly what is measured and how it is calculated

  • Baseline: current performance, measured before the build

  • Target: the result that triggers the success fee

  • Measurement window: usually 30–90 days on live data

  • Data source and verification: where the numbers come from and who verifies them

  • Base fee and success fee: amounts, triggers and payment timing

  • Partial success tiers: proportional fees when targets are partly met

  • Exclusions: factors outside our control, such as low adoption or upstream data changes

  • Cap: a maximum total fee, so your cost stays predictable




Outcome as a Service

Outcome as a service goes a step further: instead of buying software, you buy a result delivered continuously. Codersarts builds, runs, monitors and improves the system, and you pay per outcome on an ongoing basis. For example, you might pay per invoice processed or per support ticket resolved, with service levels guaranteed.


It's a natural next step after a successful outcome-based pilot, combining our Managed Service with outcome-linked pricing.



AI Outcome-Based Pricing

AI is where outcome-based pricing fits best. AI agents and automation replace measurable work, so their value can be counted directly:

AI use case

Example outcome metric

AI support agent

% of tickets resolved without a human

Document processing

Documents processed per hour at target accuracy

Invoice automation

Cost per invoice processed

Lead qualification agent

Lead response time or qualified meetings booked

Internal knowledge assistant

Time saved per employee per week

Data entry automation

Error rate compared with the human baseline


Because every Codersarts AI system includes monitoring and evaluation, outcomes are tracked on a shared dashboard from day one.



Outcome-Based Pricing Examples


Example 1: Customer Support

A software company resolves 40% of tier-1 tickets automatically today. The target is 65% within 60 days. We charge a base fee for the AI support agent plus a success fee paid at 65%, with a proportional fee at 55%.


Example 2: Invoice Processing

A distributor spends a known cost per invoice on manual processing. Under a gain sharing model, we receive an agreed share of the verified savings for 12 months after go-live.


Example 3: Document Automation

An insurance operations team pays per claim document processed at 95% extraction accuracy, an output-based pricing model with a monthly minimum.



Outcome-Based Pricing Model in the IT Industry

In the IT industry, outcome-based pricing is growing because buyers want accountability for business results, not just delivered code. It's replacing some time-and-material and fixed-price work in automation, AI, managed services and process transformation. Vendors that build, measure and optimise their systems can take on outcome risk; vendors that only write code usually can't.



When Outcome-Based Pricing Fits

Results-based pricing works when outcomes can be measured fairly. A good candidate has:

  • A clear baseline: you know today's volume, cost, time or error rate

  • One primary metric: measurable and attributable to the system

  • Sufficient volume: enough transactions to measure reliably

  • Data access: live data and systems available for integration

  • A named owner: someone on your side accountable for adoption


It's not the right fit for exploratory or brand-new products, where outcomes can't be baselined. Fixed-Price or Time and Material works better there.



How It Works


Step 1: Baseline (Weeks 1–2)

We measure current performance and agree how the metric is calculated, sourced and verified. If you don't have a baseline, a short Paid Discovery establishes one.


Step 2: Agree the Outcome-Based Contract

Metric, target, window, fees, tiers, exclusions and cap, all written down before any build starts.


Step 3: Build and Deploy (Weeks 3–8)

A production-grade system with integrations, monitoring and a live outcome dashboard.


Step 4: Measure and Optimise (30–90 days)

Weekly reviews and continuous tuning to reach the target.


Step 5: Settle and Scale

The success fee is paid on verified results. You can then continue as outcome as a service, move to a Managed Service, or replicate the result in more teams.




Benefits


For You

  • Lower upfront spend

  • Payment linked to measurable value

  • A partner accountable for results, not just delivery

  • An easier internal business case and faster approvals


For the Project

  • Clear focus on the metric that matters

  • Measurement built in from day one

  • Continuous optimisation instead of "ship and leave"



Why Codersarts

  • 500+ apps shipped since 2018, including AI agents, document automation and workflow systems

  • Production-grade engineering, with monitoring and evaluation built into every system

  • Fair, written terms with a shared dashboard and agreed verification

  • Flexible models: success fee, gain sharing, output-based or risk sharing

  • Global delivery across time zones



What Happens Next

  • AI Pilot Program: prove value on a smaller scope first

  • Paid Discovery: establish a baseline and metric

  • Managed Service: keep the system running and improving

  • Outcome as a Service: pay per result on an ongoing basis




Frequently Asked Questions


What is outcome-based pricing?

A pricing model where payment is tied to the business results a solution delivers, usually a base fee plus a success fee paid when an agreed metric is met.


What is an outcome-based contract?

The agreement that defines the metric, baseline, target, measurement window, fees and exclusions for an outcome-based engagement.


What is a gain sharing model?

A model where the vendor receives an agreed percentage of the verified savings or revenue gains the solution produces, for a set period.


What is outcome as a service?

An ongoing model where you pay per result delivered, such as per ticket resolved or per document processed, while the provider builds, runs and improves the system.


Is outcome-based pricing more expensive?

If targets are exceeded, the total cost can be higher than a fixed price. That is the premium for us carrying the risk. If targets are missed, you pay less. A cap keeps the maximum predictable.


What's the difference between outcome-based and output-based pricing?

Output-based pricing pays per unit of work, such as per document. Outcome-based pricing pays for the business result, such as cost reduced or tickets resolved without a human.


Who verifies the results?

Both sides, using a shared dashboard and an agreed data source.


Can any project use outcome-based pricing?

No. It suits measurable, high-volume processes. Exploratory or brand-new products are better on Fixed-Price or Time and Material.






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