Glossary
Per-seat pricing
Per-seat pricing charges a fixed amount for each user with access to the product, so revenue scales with headcount rather than with consumption.
Also called per-user pricing.
It is simple to forecast and simple to sell, which is why it dominated business software for two decades.
It decouples price from value when the product does the work instead of the person, which is the reason AI products have largely moved away from it.