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    Pricing Models

    Per-Seat Pricing

    A pricing model that charges customers based on the number of users who access the product.

    Per-seat pricing aligns revenue with the customer's organisational adoption — the more people use the product, the more the customer pays. It is simple to understand, easy to budget for, and creates a natural expansion path as teams grow. The main risk is that customers avoid adding seats to manage costs, limiting viral spread within organisations. Some companies counter this by offering a viewer role that does not count toward seat limits, allowing passive users to observe without triggering additional charges. Per-seat pricing works best for collaboration tools and productivity software where each individual user has direct, distinct value. It can create friction for products used by departments rather than individuals, where per-team or per-department pricing might be more natural.

    FORMULA

    Monthly Charge = Number of Seats × Price Per Seat

    EXAMPLE

    A team of 25 users on a $15/user/month plan pays $375 per month.

    RELATED TERMS

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