// GLOSSARY · CREDIT-BASED PRICING

Credit-based pricing

A pricing model where each output costs a fixed number of credits tied to its actual cost-to-serve — replacing per-seat pricing for AI tools.

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Last verified · 2026-05-29 · by Moe Ameen

What it is

Credit-based pricing prices AI content by unit of work, not by seat. One credit equals $0.005 of underlying cost in Kompozy. Every output type has a fixed credit cost — text post 3 credits, image card 8, blog 12, clipped short 14, avatar short 106, AI-generated short 214.

Per-seat pricing made sense for collaboration tools (Slack, Notion) where cost scaled with users. It does not match AI generation, where cost scales with output volume. Credit pricing also eliminates the tier-gating problem where features arbitrarily require upgrades.

Frequently asked questions

What is credit-based pricing?

Credit-based pricing prices AI content by unit of work rather than by seat. Each output type has a fixed credit cost tied to its actual cost-to-serve, replacing per-seat pricing for AI tools.

What is one credit worth in Kompozy?

One credit equals $0.005 of underlying cost in Kompozy. Every output type has a fixed credit cost mapped to that value.

How many credits does each output type cost?

A text post costs 3 credits, an image card 8, a blog 12, a clipped short 14, an avatar short 106, and an AI-generated short 214. Each cost is fixed per output type.

Why does Kompozy use credits instead of per-seat pricing?

Per-seat pricing made sense for collaboration tools like Slack and Notion where cost scaled with users, but AI generation cost scales with output volume, not headcount. Credit pricing also eliminates the tier-gating problem where features arbitrarily require upgrades.

Does credit pricing lock features behind tiers?

No. Credit pricing eliminates the tier-gating problem where features arbitrarily require upgrades, because you pay per unit of work instead of unlocking capabilities by plan.

Related terms

  • Output bucketsThe five user-facing content categories every Kompozy generation maps to: Video, Image, Text, Blog, Newsletter.
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