Definition
A pricing model where customers pay per individual user license, or seat, added to the account.
Why it matters for growth
Seat-based pricing creates a natural expansion motion as a customer's team grows, without requiring a new sales conversation each time.
Example
A project management tool charges $10 per seat per month, so a team growing from 5 to 20 people automatically quadruples its bill.
FAQ
- What is Seat-Based Pricing?
- A pricing model where customers pay per individual user license, or seat, added to the account.
- Why does Seat-Based Pricing matter for growth?
- Seat-based pricing creates a natural expansion motion as a customer's team grows, without requiring a new sales conversation each time.
- What is an example of Seat-Based Pricing?
- A project management tool charges $10 per seat per month, so a team growing from 5 to 20 people automatically quadruples its bill.