Define per-seat pricing.

Define per-seat pricing.

• A. This is when a customer pays based on the number of users they add to their subscription.
• B. This is when the price remains fixed regardless of usage.
• C. This is when pricing depends on the time of day.
• D. This is when the total units are priced.

Answer: (A)

Per-seat pricing means you charge for each individual user (seat) that has access to the subscription. You set a price per seat, and the total is the number of seats multiplied by that price. For example, if the price per seat is $10 and there are 5 seats, the monthly charge is $50. This model scales with team size because adding or removing a user changes the total immediately. It differs from usage-based pricing, where charges depend on how much of the service is used rather than how many people have access. It also isn’t a fixed price (which wouldn’t change with more or fewer seats), isn’t tied to time of day, and isn’t simply pricing by a generic total unit without tying that unit to users.

Per-seat pricing means you charge for each individual user (seat) that has access to the subscription. You set a price per seat, and the total is the number of seats multiplied by that price. For example, if the price per seat is $10 and there are 5 seats, the monthly charge is $50. This model scales with team size because adding or removing a user changes the total immediately. It differs from usage-based pricing, where charges depend on how much of the service is used rather than how many people have access. It also isn’t a fixed price (which wouldn’t change with more or fewer seats), isn’t tied to time of day, and isn’t simply pricing by a generic total unit without tying that unit to users.