# Per-Seat Pricing

> Per-seat pricing is a model where the total cost of a subscription is based on the number of individual users or "seats" authorized to use the software.

- **URL**: https://dodopayments.com/glossary/per-seat-pricing

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## What is Per-Seat Pricing?

Per-seat pricing is a model where the total cost of a subscription is based on the number of individual users or "seats" authorized to use the software. This is the most common pricing strategy for SaaS collaboration and productivity tools.

### Why It Matters

- It is easy for customers to understand and scale as their team grows.

- It provides a predictable revenue stream that grows linearly with the customer's headcount.

- It encourages broad adoption within an organization, as each new user adds incremental value.

- It simplifies the billing process by tying the invoice directly to the user list in the system.

## Learn More

- [Tiered pricing model guide](https://dodopayments.com/blogs/tiered-pricing-model-guide)
- [Pricing psychology tactics that improve conversion](https://dodopayments.com/blogs/pricing-psychology)
- [How to use value-based pricing in SaaS](https://dodopayments.com/blogs/value-based-pricing-saas)