Seat-Based Revenue
Model recurring revenue from a per-seat pricing plan.
MONTHLY RECURRING REVENUE
$10,000
$120,000
ARR
1,000
Total seats
MRR = accounts × seats per account × price per seat. Expansion (more seats) is the main growth lever here.
What is Seat-Based Revenue?
Seat-based revenue models the recurring revenue from per-seat pricing — how accounts, seats per account, and price per seat multiply into MRR.
MRR = accounts × seats per account × price per seat
How to read your result
- Per-seat pricing grows revenue as customers add teammates.
- Expansion (more seats) is a major growth lever in this model.
- Watch that per-seat pricing doesn't discourage adoption.
- Multiply MRR by 12 for the annualized run rate.
Frequently asked questions
Is seat-based pricing right for my product?
It works when value scales with the number of users. If value is usage- or outcome-based, per-seat pricing can cap growth or discourage adoption.
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