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What is Tiers + per Seat (Per Seat or Other Unit) Pricing?

This pricing model combines a recurring fee for a specific pricing tier with a per Seat fee. Pricing Tiers are different packages your customers can choose from that contain a certain set of features, typically a set of three packages like Standard, Gold, and Platinum. Instead of offering just one pricing plan, you segment the pricing of your product into different packages. This allows customers to choose the option that best accommodates their needs. The “Seat” in per Seat Pricing refers to the seat of someone sitting in front of your software using it. In other words, this pricing model charges an additional fee on top of your base fee for every user account that your customer creates.

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Why this model?

You mentioned that your product provides more value if more people within a company are using it. At the same time, you have different ideal customer profiles. When you combine Tiers and per Seat Pricing, make it possible for your different customer profiles to find their needs met within one specific tier while you charge for the additional value per user that your product provides. As your customer gets used to using your product more and as they grow, they will want to add more users to their account, and you generate additional revenue off of each of those users. Ideally, a group of users will eventually then want to upgrade tiers as they will require some of the features in your higher tier. Example: Notion, Miro, Figma, Slack, Docusign, Front, Microsoft 365 for Business, Grammarly, Descript, Calendly, Apollo