// GTM

Seat-Based Pricing

Pricing per named user or active seat. The default SaaS pricing model since 1999.

In depth

Predictable, easy to forecast, easy to sell. But it under-monetises heavy users and creates seat-hoarding at renewal. Being displaced or hybridised by usage-based pricing in AI-native products where the value scales with usage, not headcount.

Related terms

Usage-Based Pricing

Pricing that scales with a consumption metric (API calls, events, tokens, GB) rather than seats.

Hybrid Pricing

A pricing model combining a seat-based platform fee with usage-based charges for consumption components.

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