Perplexity pricing: How it works and how to set up a similar pricing model

Did you know that Perplexity’s pricing model can handle many variables without major hitches or billing errors?

In this article, we’ll explain:

• How the Perplexity pricing model works
• Companies that could benefit from a similar pricing model
• How to build your own Perplexity-like pricing model 
• How Orb helps in that process

Let’s kick things off by talking about what Perplexity is and how it works. 

What is Perplexity?

Perplexity is an AI-powered search engine. It blends the conversational style of a chatbot with the vast informational reach of traditional search engines. You can think of it as a dynamic fusion of ChatGPT and Google Search.

Why does it stand out? It can deliver precise and insightful answers to your queries. The best part is it also provides the sources that it used to generate them.

How does Perplexity work?

At its core, Perplexity harnesses the power of large language models (LLMs). It uses LLMs such as GPT-4 and Claude 3 to decipher your questions and craft informative responses. 

Perplexity also boasts its own built-in search engine. This engine scours the Internet daily, ensuring you have access to the most up-to-date information.

Whether you're seeking a quick, direct answer or a more in-depth exploration of a topic, Perplexity has you covered with its two search modes:

1. Quick search: This search mode is ideal for those on-the-go moments when you need a swift and concise response.
2. Pro search: This search mode tailors its answers to your specific needs. It even engages in follow-up questions to refine its understanding further. 

Perplexity Pro unlocks even greater capabilities with access to more powerful AI models and extra features. We’ll touch upon this in the coming section. 

Perplexity's features

Perplexity has many features that set it apart from both traditional search engines and AI chatbots. Let’s see what Perplexity can do: 

• It presents answers in a clear and organized manner. Its answers are accompanied by footnotes that pinpoint the exact sources of information.
  ‍
• It allows you to engage in natural conversations. Perplexity asks follow-up questions or requests adaptations to the provided answers.
  ‍
• Its Pro Search mode actively seeks clarification. Its goal is to ensure that it fully grasps your query before delivering results.
  ‍
• You can upload documents and images to enhance Perplexity's understanding of your context. Keep in mind this is a feature exclusive to Perplexity Pro.
  ‍
• Perplexity can even generate images and craft text based on the information it uncovers. 
  ‍‍
• You can neatly organize your searches into collections and share specific threads with others.
  ‍‍
• The mobile app and Chrome extension expand your access to Perplexity across various devices and platforms.
  ‍‍
• Perplexity Pro subscribers also enjoy the benefit of API access. Having access to the Perplexity AI API enables companies to use Perplexity's power within their own projects.

What are Perplexity's pricing models?

Perplexity offers a tiered pricing structure. This Perplexity pricing system caters to both individual users and businesses. Let's dive into the specifics:

Perplexity pricing for individual users

Perplexity welcomes everyone with open arms through its Standard plan. The hook? It's touted as “free forever.” 

This plan grants users unlimited quick searches and a taste of the Pro experience with 5 Pro searches per day. Users also get access to the standard Perplexity AI model, which is optimized for both speed and quality.

For those who want more, Perplexity Pro unlocks the full power of the platform. At $20 per month, Pro subscribers enjoy a plethora of benefits:

• Users get access to unlimited pro searches (300+ per day).
• Users get the freedom to choose their preferred AI model from a selection that includes GPT-4, Claude-3, and more.
• Users can upload and analyze unlimited files.
• They can visualize answers using various image-generation tools.

Perplexity pricing for enterprises 

Perplexity extends its AI prowess to businesses through its API. Let’s take a closer look at Perplexity API pricing across its three models:

• Perplexity Sonar models and open-source models: These models are priced per 1 million tokens. The costs range from $0.2 to $5, depending on the specific model.
  ‍
• Perplexity Chat models: These models have a fixed price per 1,000 requests. They also include a variable price based on the number of input and output tokens.

Perplexity Pro subscribers receive a $5 credit towards the API each month.

Note: As of August 28, 2024, this is the current lay of the land regarding Perplexity pricing figures. But, as with all things tech, it's worth checking in periodically to stay abreast of any updates.

What kind of companies benefit from a Perplexity pricing model?

Perplexity's pricing structure opens doors for a variety of businesses. However, certain types of companies are particularly well-suited to thrive under this model. Let’s take a closer look at how and why:

AI-related industries

Companies developing AI-powered solutions, chatbots, or research tools stand to gain a lot. A Perplexity-like pricing model accounts for the cost of each token. This ability means businesses can carefully measure exactly how much their API calls are costing them.

Perplexity’s approach to usage-based pricing keeps users happy because they only pay for what they use. For businesses, they get a deeper level of granularity in their per-token costs.  This functionality makes the Perplexity pricing model a cost-effective solution for companies scaling their AI initiatives.

Fast-scaling companies

For scale-up businesses, predictability in costs is crucial. Perplexity's pay-as-you-go model aligns perfectly with this need. As their usage fluctuates, so does their bill. 

This means a pricing system like Perplexity’s, lets them manage their expenses more effectively. Plus, it allows them to do so while still having the flexibility to scale their AI usage as needed.

Companies with fluctuating AI needs

Businesses whose AI requirements vary depending on factors like seasonality or project cycles can also benefit. They can ramp up their usage during peak periods and scale back during lulls. This structure helps them make sure they're not paying for unused resources.

How to build your own Perplexity-style pricing model

Crafting your own dynamic pricing model requires some prep work. Here's a quick 5-step guide with the basics you need:

1. Define your value metrics

Start by pinpointing the core elements that drive value in your product or service. Are you offering API calls? Maybe access to exclusive features? Perhaps a combination of both? 

Identifying these key metrics is crucial for designing a pricing structure that reflects the value you provide to users.

2. Segment your customer base

Different customers have different needs and budgets. Segment your target market based on factors such as usage patterns, company size, or industry. This preparation will allow you to tailor pricing tiers that cater to the unique requirements of each segment.

3. Choose your pricing structure

Select a pricing model that aligns with your value metrics and customer segments. Consider options such as:

• Freemium: Offer a basic free plan with limited features and a premium plan with additional capabilities.
• Usage-based: Charge customers based on their actual consumption of your product or service.
• Tiered pricing: Provide different pricing tiers with varying levels of features and usage limits.

4. Prepare for implementation

As you gear up to work with the billing platform of your choice, make sure you have the following in place:

• Clear product catalog: A list of your product offerings, features, and associated pricing.
• Usage data collection: A system for accurately tracking customer usage of your product or service.
• Customer management: A method for managing customer accounts, subscriptions, and billing information.

5. Consider leveraging Orb's capabilities

Once you've laid the groundwork, Orb's billing platform can help you bring your pricing model to life. With its powerful features, you can:

• Implement complex pricing structures: Easily configure and manage tiered pricing, usage-based billing, and other sophisticated models.
• Automate billing and invoicing: Streamline your billing processes, reducing manual effort and errors.
• Gain insights into customer behavior: Access detailed analytics to understand how customers are using your product and identify opportunities for growth.

Next steps: Let Orb solve billing for you

We've explored Perplexity's pricing strategy. In this real-life example, you’ve seen how a Perplexity-style pricing model can truly resonate with its diverse customer base and prevent revenue leaks.

If you’d like to set up a Perplexity-like pricing model for your company too, you should consider using Orb. 

Orb allows businesses to launch products confidently and gain insights into customer behavior. It's a platform built for the future, designed to handle the complexities of modern SaaS billing with ease.

That's why industry-leading companies like Materialize and Vercel trust us to power their pricing and billing infrastructure. Orb is a flexible billing engine for hybrid and usage-based pricing built for developers and finance teams. Orb ingests product usage data at a massive scale, speeds up new product launches, and provides detailed financial reporting.

Here's a glimpse into how Orb can elevate your SaaS billing:

• Billing precision: Orb's meticulous tracking ensures that every billable action is accounted for. This feature guarantees accurate invoices and prevents revenue loss.
  ‍
• Effortless scalability: As your business evolves and your pricing models adapt, Orb scales with you. Orb eliminates the need for intricate data manipulations as you adjust your pricing model.
  ‍
• Data-driven insights: Orb transforms raw usage data into actionable insights. We help you understand your customers' behavior and optimize your pricing strategies.
  ‍
• Seamless integration: Orb connects with your existing tech stack. This includes data warehouses and accounting software. 
  ‍
• Customer-centric clarity: Orb lets you define your billing metrics with precision. This results in transparent and fair pricing that fosters customer trust.

With Orb, you can navigate SaaS billing with confidence, freeing you to focus on what truly matters — growing your business. Experience the difference firsthand with our free demo today.