Source: https://www.revvly.ai/glossary/seat-based-pricing

[Glossary](https://www.revvly.ai/glossary)

# Seat-based pricing

Also: per-seat pricing

**Seat-based pricing charges a recurring fee per user licence. It is simple to explain and forecast, and revenue grows as a customer adds people. It works best when value rises with the number of users, and breaks when customers share logins or when value comes from outcomes rather than headcount.**

## How to read it

Decide how seat additions and removals are billed mid-cycle and whether there is a minimum. Seat counts are a natural expansion and contraction signal, so report their movement in the MRR bridge.

## In Revvly

- [Docs: guides teams and seats](https://www.revvly.ai/docs/guides/teams-and-seats)

## Further reading

- [Seat-based pricing: when it works for SaaS and when it breaks](https://www.revvly.ai/blog/seat-based-pricing-when-it-works-and-breaks)

## Related terms

- [Usage-based pricing](https://www.revvly.ai/glossary/usage-based-pricing)
- [Hybrid pricing](https://www.revvly.ai/glossary/hybrid-pricing)
- [Expansion MRR](https://www.revvly.ai/glossary/expansion-mrr)

Revvly

Orchestrate the flow of revenue.

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