← Glossary · pricing

Seat-Based Pricing

A pricing model where the buyer pays per active user account.

Seat-based pricing is the simplest model to budget and to evaluate. The downside is that it disincentivizes adoption: every new user adds incremental cost, so teams sometimes restrict access to keep the bill down. Buyers should negotiate "true-up" terms (annual seat reconciliations rather than instant adds) and cap the per-seat escalator to avoid surprise bills mid-term.