CEO of Replit said: Consumers HAVE to think less in terms of paying for software and more like hiring an hourly employee

I knew it—my hypothesis seems correct after seeing today’s post from Amjad (Replit CEO):

“The next generation of LLM applications will require consumers to think less about paying for software and more about hiring an hourly employee. Replit is a step ahead in this direction, and I expect all major labs to implement similar models.”

Replit no longer wants to sell their software as a product. As I argued, we shouldn’t expect them to lower the price of Agent 3. These agents are becoming more and more capable – they will soon be comparable to the top 10% of programmers – which increases their value, and Replit knows this. So it doesn’t make sense to sell “software” but rather the outcome and value of the service. That’s exactly what the line is about: “LLM applications will be more like hourly employees than software licenses.”

So, let’s be prepared that programming with Replit will cost around $10/hour, which is $80-100 per workday, or around $2,400 per month for daily use. Is that a lot? Both yes and no. Not compared to hiring a top-notch programmer, but it’s a significant new cost that needs to be factored into your quotes. If you’re going to use Replit to its fullest, expect $1,500-2,500 per month - similar to the cost of a new employee. Replit seems to be deliberately trying to make us think of the service as an hourly “employee,” because if they were to market it as software, few people would pay $2,000 per month. So it makes sense to promote it as hiring an “agent” employee.

What does this mean for us? Another fixed expense – around $2,000 per month for an “employee” (Replit agent) that we have to add to our existing costs.

The question is: are we competitive enough to succeed in a world where almost anyone can create a basic website or simple app? Why should clients hire us?

So what? Honestly, I don’t know yet! :smiley:

Bonus, no L&I or other taxes.

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The reality is the Enterprise will eventually pay for it, and I’d expect all these costs to skyrocket, which is going to box a lot of people out (there’s still a lot in terms of proper governance and CI/CD that needs to be built in, so it feels a little premature). Salaries for these types of roles are usually $125k+ just in salary, and as @realfunnyeric pointed out, there’s close to about 30% more in additional costs for an employee, not counting software licenses for them.

The exponential cost change with Agent 3 is a pretty big signal if you think the current rate is tough to swallow, it’s certainly going to get higher as Replit seems to be headed towards serving larger companies. Create backup plans accordingly if it’ll be too much. Hopefully they just give users a warning ahead of time.

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I already thought about it this way I just wish they would stop screwing around with the agent and make sure it works, i’m having alot of issues right now on a very large codebase, which they claim the new agent 3 is designed for. To be determined.

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