Seat-based, or per-user, pricing is the most familiar SaaS model. It is simple to explain and forecast, but it can discourage adoption if customers limit seats to save money.
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Strengths and limits
It scales with team size and is easy to budget. It works best when value rises with each additional user. It fits poorly where a few users get most of the value, or where automation reduces the need for seats.
Variants
- Flat price per seat
- Tiered plans with seat bundles
- Different prices for full and view-only users
- Minimum seat counts for business plans
Common mistakes
Penalising collaboration
If extra users feel expensive, customers share logins and adoption stalls.
Frequently Asked Questions
Depends on where the value lives. Test with buyer interviews and look at how customers actually use the product.
Keep reading
- Usage-based pricing: Usage-based pricing charges customers according to how much of the product they use, such as API calls, messages or storage.
- Pricing Page: A pricing page lists a product's plans and prices, helping buyers pick the right option. It is often one of a SaaS site's most visited commercial pages.
- Plan Comparison Table: A plan comparison table lays out a product's pricing tiers in columns and their features in rows, so buyers can see exactly what each plan includes.
- Expansion Revenue: Additional recurring revenue from existing customers through upgrades, extra seats, add-ons or higher usage. The main driver of net revenue retention.
- Acquisition Channel: A route through which a company finds new customers, such as organic search, paid ads, referrals, partners or outbound sales. Each has its own costs and limits.
- Average Contract Value: The average annual value of a customer contract, excluding one-off fees. It shapes which sales motion and acquisition channels a SaaS company can afford.
- Average revenue per account: Average revenue per account is recurring revenue divided by the number of paying accounts.
- Bottom-of-Funnel Content: Content for buyers who are choosing between products, such as comparisons, alternatives, pricing and integration pages, built to turn searches into customers.
