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Pricing Strategy: Banatie for AI Developers

Date: October 20, 2025 Version: 2.0 (Hybrid model - Credits + Subscription) Based on: Oleg's personal feedback + Krea.ai model inspiration Status: Draft for validation testing

Pricing Philosophy

Core insight from ICP research:

"Дискомфорт подписки в том, что я не регулярно пользуюсь сервисами и жалко денег когда не пользуюсь"

Problem with traditional SaaS subscriptions:

  • Episodic usage patterns (site in a weekend, then 2 months idle)
  • Guilt of paying for unused months
  • Unpredictable usage (one project = 100 gens, another = 5 gens)
  • Commitment anxiety (canceling is friction)

Solution: Hybrid Model

  • Credits for episodic users (buy when needed, use over 90 days)
  • Subscription for power users (regular usage, predictable cost)
  • Free tier for evaluation (no credit card, instant access)

Tier Structure

Free Tier: "Playground"

Purpose:

  • Evaluation, testing, demos
  • NOT a long-term free option
  • Deliberately limited to push conversion

Limits:

  • 10 generations per month
  • Resets on 1st of each month
  • Watermark on images (SynthID by Google)
  • All API/MCP features available
  • Basic transformations only

What's included:

  • ✅ REST API access
  • ✅ MCP integration
  • ✅ Prompt Enhancement
  • ✅ CDN delivery
  • ✅ @name references
  • ✅ Basic transformations (resize, format)
  • ✅ Generation history (30 days)

What's NOT included:

  • ❌ No watermark removal
  • ❌ Limited transformations (no custom presets)
  • ❌ Priority queue (slower generation)
  • ❌ Advanced features (when released)

Revenue impact: $0 (cost center) Goal: Convert 10-20% to paid within 30 days

Credit Packs: "Pay As You Go"

Purpose:

  • Episodic builders (weekenders, hobbyists)
  • One-time projects (landing pages, side projects)
  • Users who value flexibility over commitment

Packs:

Pack Size Price Per-Image Cost Expiry Best For
Starter $20 $0.10 90 days 1-2 small projects
200 generations Testing value
Builder $50 $0.083 90 days 2-4 medium projects
600 generations Most popular
Creator $100 $0.067 90 days Large projects
1,500 generations Bulk work

What's included:

  • ✅ All Free tier features
  • ✅ No watermark (production-ready)
  • ✅ All transformations
  • ✅ Extended history (1 year)
  • ✅ Priority support (email, 48hr response)

What's NOT included:

  • ❌ Priority generation queue (Pro only)
  • ❌ Advanced features (Pro only, when released)
  • ❌ Monthly recurring generations

Why 90-day expiry:

  • Based on Oleg's Krea.ai feedback: "90 дней достаточно чтобы потом потратить остальное"
  • Long enough to not feel rushed
  • Short enough to encourage purchase when needed
  • Industry standard (Krea.ai, similar services)

Purchase flow:

  • One-click Stripe Checkout
  • No subscription created
  • Credits added immediately
  • Email receipt + usage reminder at 30 days left

Pro Subscription: "$49/month"

Purpose:

  • Power users (agencies, frequent builders)
  • Predictable cost (easier budgeting)
  • Premium features (when released)

Pricing:

  • $49/month (billed monthly)
  • OR $470/year (save $118 = 20% discount)

What's included:

  • ✅ 500 generations per month (included)
  • ✅ All Credit Pack features
  • ✅ Priority generation queue (2x faster)
  • ✅ Advanced features (exclusive):
    • Flow-based generation (when released)
    • Namespaces / project organization
    • On-demand URL generation
    • Custom style presets (future)
  • ✅ Priority support (24hr response)
  • ✅ Overage pricing: $0.10/gen (same as Starter pack)

Why $49:

  • Below Cloudinary ($89/month)
  • Above typical dev tools ($20-30)
  • Justifiable for agencies (5-10 hrs/week saved = $500+ value)
  • High enough to filter hobbyists
  • Room for future Enterprise tier ($149+)

Target customers:

  • Small agencies (3-10 people)
  • Freelancers with regular clients
  • Technical founders building MVPs full-time
  • Developers creating content regularly (blogs, courses)

Conversion incentive:

  • "If you use >500 generations/month, Pro is cheaper than credits"
  • "Get exclusive features not available elsewhere"
  • "Cancel anytime, no long-term commitment"

Pricing Comparison Table (User-Facing)

Feature Free Credits Pro
Generations/month 10 As purchased 500 included
Watermark Yes No No
MCP Integration ✅ ✅ ✅
Prompt Enhancement ✅ ✅ ✅
@name References ✅ ✅ ✅
CDN Delivery ✅ ✅ ✅
Transformations Basic All All
Priority Queue ❌ ❌ ✅ 2x faster
Advanced Features ❌ ❌ ✅ Exclusive
Support Community Email (48h) Email (24h)
Price $0 $20-100 $49/mo
Best For Testing 1-4 projects Regular use

Cost Analysis (Break-Even Math)

Our Costs Per Generation:

Gemini 2.5 Flash Image API:

  • $0.039 per image (1024x1024)
  • Source: Google Cloud Pricing (Oct 2025)

Prompt Enhancement (Gemini 2.0 Flash):

  • ~$0.001 per prompt (negligible)

CDN Bandwidth (Cloudflare):

  • Free tier: 100GB/month
  • Estimate: ~2MB per image = 50K images/month in free tier
  • After free tier: $0.01/GB = ~$0.00002 per image (negligible)

Infrastructure (Estimated):

  • VPS: $20/month (Contabo) = ~$0.001 per image at 20K gens/month
  • MinIO storage: negligible (1TB = $5/month)
  • Database: included in VPS

Total Cost Per Generation: ~$0.040

Revenue Per Generation:

Free Tier: -$0.040 (loss per image) Starter Pack ($20 / 200): $0.10 per gen → $0.06 profit Builder Pack ($50 / 600): $0.083 per gen → $0.043 profit Creator Pack ($100 / 1500): $0.067 per gen → $0.027 profit Pro Subscription ($49 / 500): $0.098 per gen → $0.058 profit Pro Overage: $0.10 per gen → $0.06 profit

Break-Even Analysis:

Fixed Costs (Monthly):

  • Infrastructure: $20 (VPS)
  • Stripe fees: ~3% of revenue
  • Oleg's time: N/A (sweat equity)

Variable Costs:

  • Gemini API: $0.04 per generation

Scenario 1: 100% Free Tier (Worst Case)

  • 100 users x 10 gens = 1,000 gens
  • Cost: 1,000 x $0.04 = $40
  • Revenue: $0
  • Loss: -$60/month

Scenario 2: 50% Free, 50% Paid (Realistic Early)

  • 50 free users x 10 gens = 500 gens (cost: $20)
  • 50 paid users x 100 gens avg = 5,000 gens
    • 30 users buy $20 pack = $600 revenue, 6,000 gens, cost $240
    • 15 users buy $50 pack = $750 revenue, 9,000 gens, cost $360
    • 5 Pro subscribers = $245 revenue, 2,500 gens, cost $100
  • Total Revenue: $1,595
  • Total Cost: $20 (infra) + $720 (API) = $740
  • Profit: ~$855/month

Scenario 3: PMF (6 months in)

  • 200 free users = 2,000 gens (cost: $80)
  • 80 Credit Pack users = $3,200 revenue, 30K gens, cost $1,200
  • 20 Pro users = $980 revenue, 10K gens, cost $400
  • Total Revenue: $4,180
  • Total Cost: $20 + $1,680 = $1,700
  • Profit: ~$2,480/month

Break-even: ~10-15 paying customers ($300-500 MRR)

Pricing Psychology

Why This Structure Works:

1. Anchoring:

  • Free tier = "anchor low" (10 gens feels limited)
  • Pro tier = "anchor high" ($49 feels premium)
  • Credit packs = "middle option" (most choose Builder $50)

2. Value Perception:

  • "No watermark" = tangible value (production-ready)
  • "Priority queue" = time savings (valuable for agencies)
  • "Exclusive features" = FOMO (Pro only)

3. Decision Simplification:

  • Only 3 paid options (not 6-7 like some competitors)
  • Clear use case per tier (testing → projects → regular use)
  • Easy to upgrade (credits → Pro seamless)

4. Commitment Gradient:

  • Free → try instantly (no credit card)
  • Credits → low commitment (pay once, use when needed)
  • Pro → higher commitment (monthly, but cancel anytime)

Competitor Pricing (Benchmarking)

Service Model Price What You Get
Cloudinary Subscription $89/mo 25GB storage, 25GB bandwidth, transformations
imgix Subscription $62.50/mo Image optimization, CDN, transformations
Replicate Pay-as-you-go $0.055/gen Flux Pro generation only, no CDN
Gemini Studio Free/Usage $0.039/gen Direct API, no infrastructure
Midjourney Subscription $30/mo 200 fast gens, image generation only
Krea.ai Hybrid $10/mo + packs Realtime gen, credits for video

Banatie positioning:

  • More expensive than pure gen APIs (we bundle CDN + automation)
  • Cheaper than full image platforms (Cloudinary, imgix)
  • Similar to Krea.ai (hybrid model resonates with creators)
  • Higher value than Midjourney (programmatic, production-ready)

MCP Access Strategy (Revised)

Original plan: MCP only for Pro tier Oleg's feedback: "MCP должно быть бесплатно, это маркетинговая фича"

New strategy: MCP on ALL tiers ✅

Why this is correct:

  1. Viral adoption: Developers try MCP → share with others → network effect
  2. Can't restrict: If API is open, community will build MCP anyway
  3. Marketing asset: "First AI image gen with native MCP support"
  4. Trust building: No artificial feature paywalls (developer-friendly)

How to monetize without MCP paywall:

  • Free tier: Limited generations (10/month) → forces upgrade
  • Credits: Episodic users buy when needed → flexible revenue
  • Pro: Heavy users subscribe → predictable MRR

Features exclusive to Pro (after launch):

  • Priority queue (2x faster generation)
  • Flow-based generation (complex workflows)
  • Namespaces (project organization)
  • On-demand URL generation
  • Custom style presets

These are legitimately advanced, not artificial restrictions.

Pricing Page Copy (Draft)

Headline:

"Start free. Pay only when you need it. Or subscribe for heavy use."

Subheadline:

"No credit card required to try. Production-ready images with MCP, API, or UI."

Free Tier Card:

Playground $0/month

Perfect for testing and small demos

  • 10 generations/month
  • MCP + API + UI access
  • Prompt Enhancement
  • CDN delivery
  • Watermark on images

[Start Free →]

Credit Packs Card:

Pay As You Go From $20

Buy credits when you need them

  • 200-1,500 generations
  • No watermark (production-ready)
  • All transformations
  • Valid for 90 days
  • No recurring charges

[View Packs →]

Pro Subscription Card:

Pro $49/month

For regular builders and agencies

  • 500 generations/month included
  • Priority generation queue (2x faster)
  • Exclusive features (Flow, Namespaces)
  • $0.10 per additional generation
  • Cancel anytime

[Start Pro Trial →]

FAQ (Pricing-Related)

Q: Can I switch from credits to Pro subscription? A: Yes, anytime. Unused credits remain valid for 90 days.

Q: What happens if I run out of credits? A: Generations pause until you purchase more credits or upgrade to Pro.

Q: Can I use Pro subscription + buy extra credits? A: Pro includes 500 gens/month. After that, it's $0.10/gen automatically. No need to buy packs.

Q: Do unused Pro generations roll over? A: No, but overage is only $0.10/gen (same as credit packs).

Q: Can I cancel Pro anytime? A: Yes, cancel anytime. You keep access until end of billing period.

Q: Is there a refund policy? A: Credit packs: No refunds (digital goods). Pro: 14-day money-back guarantee if <50 generations used.

Q: Can I share credits with team members? A: Not in MVP. Team features coming soon for Pro+ tier.

Q: Do credits expire? A: Yes, 90 days from purchase. You'll get email reminders at 30 days and 7 days before expiry.

Q: Is there an Enterprise plan? A: Not yet. Contact us if you need >10K generations/month or custom features.

Pricing Experiments (Post-Launch)

Month 1-2: Validation

  • Test current structure
  • Track conversion rates (Free → Credits, Free → Pro)
  • Identify most popular pack (likely Builder $50)

Month 3: A/B Test

Test A: $20 / $50 / $100 packs (current) Test B: $15 / $40 / $80 packs (10% cheaper)

  • Measure: Revenue per user, conversion rate

Month 4: Pro Tier Test

Test A: $49/month for 500 gens Test B: $39/month for 400 gens

  • Measure: Pro adoption rate, MRR growth

Month 5: Annual Discount Test

Test A: 20% discount (current: $470/year) Test B: 30% discount ($410/year)

  • Measure: Annual vs. monthly ratio, LTV

Pricing Flexibility (Dynamic Adjustments)

When to increase prices:

  • If profit margins <30% (Gemini API costs rise)
  • If demand significantly exceeds supply (resource constraints)
  • After strong PMF signals (low churn, high NPS)

When to decrease prices:

  • If conversion rate <5% (Free → Paid)
  • If competitor undercuts significantly
  • If usage patterns show lower value perception

When to add tiers:

  • Hobbyist tier ($10/mo for 100 gens): If many users want smaller commitment than $49
  • Agency tier ($149/mo for 2,000 gens + team features): After agencies start adopting
  • Enterprise tier (Custom): After 50+ Pro users, inbound agency interest

Revenue Projections

Conservative (Months 1-6):

  • Month 1: 10 paid users = $300 MRR
  • Month 2: 20 paid users = $700 MRR
  • Month 3: 35 paid users = $1,200 MRR
  • Month 4: 50 paid users = $1,800 MRR
  • Month 5: 70 paid users = $2,400 MRR
  • Month 6: 90 paid users = $3,000 MRR

Assumptions:

  • 70% credit packs ($30 avg), 30% Pro ($49)
  • 10% monthly growth (conservative)
  • 5% monthly churn

Optimistic (Months 1-6):

  • Month 1: 20 paid users = $600 MRR
  • Month 2: 40 paid users = $1,400 MRR
  • Month 3: 70 paid users = $2,200 MRR
  • Month 4: 110 paid users = $3,500 MRR
  • Month 5: 160 paid users = $5,200 MRR
  • Month 6: 220 paid users = $7,000 MRR

Assumptions:

  • Viral growth via Reddit, MCP adoption
  • 60% credit packs, 40% Pro
  • 20% monthly growth (strong PMF)
  • 3% monthly churn

Realistic (Split the Difference):

  • Month 1: $450 MRR
  • Month 2: $1,050 MRR
  • Month 3: $1,700 MRR
  • Month 4: $2,650 MRR
  • Month 5: $3,800 MRR
  • Month 6: $5,000 MRR (TARGET)

Key milestone: $5K MRR by Month 6 = Proof of viability

Stripe Setup (Technical)

Products to Create:

1. Credit Packs (One-time payments):

Product: Banatie Credits - Starter Pack
Price: $20.00 USD
Type: One-time
Metadata: { credits: 200, expiry_days: 90 }

Product: Banatie Credits - Builder Pack
Price: $50.00 USD
Type: One-time
Metadata: { credits: 600, expiry_days: 90 }

Product: Banatie Credits - Creator Pack
Price: $100.00 USD
Type: One-time
Metadata: { credits: 1500, expiry_days: 90 }

2. Pro Subscription:

Product: Banatie Pro
Price: $49.00 USD/month
Type: Recurring (monthly)
Metadata: { included_credits: 500, overage_rate: 0.10 }

Product: Banatie Pro (Annual)
Price: $470.00 USD/year
Type: Recurring (yearly)
Metadata: { included_credits: 500, overage_rate: 0.10 }

Webhook Events to Handle:

checkout.session.completed:

  • Add credits to user account
  • Set expiry date (+90 days)
  • Send confirmation email
  • Log transaction

customer.subscription.created:

  • Activate Pro tier for user
  • Reset monthly generation counter
  • Send welcome email

customer.subscription.deleted:

  • Downgrade to Free or Credits
  • Send cancellation confirmation

invoice.payment_succeeded:

  • Reset monthly generation counter (for Pro)
  • Charge overage if applicable
  • Send invoice receipt

invoice.payment_failed:

  • Suspend Pro tier
  • Send payment failure notification
  • Retry payment (Stripe handles)

Pricing Strategy: Key Decisions

✅ CONFIRMED:

  1. Hybrid model (Credits + Subscription) - accommodates episodic AND regular users
  2. MCP on all tiers - marketing asset, can't be restricted
  3. 90-day credit expiry - based on Krea.ai feedback from Oleg
  4. Free tier with 10 gens/month - enough to test, not enough to abuse
  5. Watermark on free tier - clear upgrade incentive
  6. $49 Pro tier - positioned between dev tools ($20) and platforms ($89+)
  7. No fake scarcity - transparent, developer-friendly pricing

â³ TO VALIDATE:

  1. Credit pack sizes - are 200/600/1500 the right amounts?
  2. Pro inclusion (500 gens) - is this the sweet spot or too low/high?
  3. Annual discount (20%) - does this drive annual commitments?
  4. Overage pricing ($0.10) - acceptable or feels like nickel-and-diming?

ðŸ"® FUTURE:

  1. Hobbyist tier ($10-20) - if demand shows for lower entry point
  2. Agency tier ($149+) - when agencies start adopting
  3. Enterprise tier (Custom) - SLA, SSO, white-label
  4. Volume discounts - for high-usage customers (>10K gens/month)

Document owner: @men (based on Oleg's feedback) Next review: After beta testing (Month 2-3) Related docs: strategy/07-validated-icp-ai-developers.md, execution/09-mvp-scope.md