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Also known as: per-seat pricing, per-user pricing, user-based pricing

Seat-Based Pricing

FoundationalStrategiesFinance

Definition

Seat-Based Pricing: Seat-based pricing charges based on the number of users accessing the product. It's simple to understand and scales with organization size. However, it can discourage broad adoption within companies and may not correlate with actual value delivered.

Example Usage

“At $20/seat/month, our pricing is predictable for customers. We offer volume discounts at 50+ seats to win larger deals.”

Common Misconceptions

Per-seat always aligns with value. Some products deliver value regardless of user count; consider alternatives.
All seats should cost the same. Differentiated pricing for admin vs. viewer seats can optimize revenue.
Seat pricing prevents seat-sharing. It can encourage sharing credentials; consider enforcement or alternative models.

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