Seat-Based Billing

What is Seat-Based Billing?

Seat-based billing is a pricing model where a customer is charged for each individual user account that has access to the software. The total bill is calculated by multiplying the number of active or authorized seats by the price per seat.

Why It Matters

• It is the industry standard for most B2B software applications, making it familiar to buyers.

• It allows for easy scaling of revenue as a customer’s organization grows.

• It provides a clear metric for measuring product adoption and user engagement.

• It simplifies the management of user permissions and access control within the application.