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Podcast: Investor Connect Podcast
Episode: Startup Funding Espresso -- Per Seat vs per Use Pricing
Description: Per Seat vs per Use Pricing Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Many SaaS businesses use either per-seat or per-use pricing. Per seat pricing offers a fixed price for the customer making it easy to budget. It also provides a consistent revenue stream for the provider especially when applied with annual contracts. Per-use pricing works best for the provider whose cost scales with the product usage. Usage pricing is often used in a ‘land and expand’ strategy in which customers can start with a low price but...