Seat-based pricing charges per user or per license — typically a flat monthly fee per active user. It is the most common SaaS pricing model for collaboration and productivity tools because it is easy to understand, predict, and align with HR headcount data.
The challenge: enterprise buyers actively minimize seats, creating a ceiling on expansion MRR. Many SaaS companies layer usage limits or feature gates on top of seats to unlock additional revenue vectors beyond simple headcount growth. Seat-based models work best when every user gets consistent, measurable value from the tool.