SaaS & Startupintermediate
Seat-Based Pricing
Definition
A SaaS pricing model where the total price depends on the number of users (seats) accessing the product, common in B2B software.
Why it matters
Seat-based pricing naturally expands revenue as teams grow. Each new team member is a new revenue opportunity, creating strong net revenue retention.
Example
A project management tool charges £15/seat/month. A company that starts with 5 users (£75/month) grows to 20 users (£300/month), without any product change.
Related terms
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