Should we switch to per-seat pricing or stay with a flat monthly rate?

[GregoryNR]

I’m trying to decide if we should switch our SaaS product to a per-seat pricing model from our current flat monthly rate. I’m worried it might actually slow our growth if our existing small-team customers feel penalized for adding a new user, but I also see the logic in revenue scaling directly with usage.

[BrandonL]

I tried something similar last year. We moved from a flat monthly to per-seat for new customers and kept the old pricing for existing users for six months. Solo and small teams did feel the price for adding a seat, and signups dipped a bit for 2–3 person shops. Bigger teams climbed faster once they needed more seats, and the average revenue per account rose as teams bought several seats. It felt like it scaled with usage, but it definitely brought up a fear that we’d alienate our smallest customers.

[Steven66]

Another angle we tried was a hybrid: a base price plus a small bump after a threshold. It kept the small teams in, but the sales cycle got longer because people wanted to understand the math. In the end we paused the experiment because the team kept asking for more data and we never got a clean signal.

[GraceAT]

Onboarding and admin invites turned out to be the real bottleneck. We rolled out a change and suddenly the volume of help tickets spiked as admins worried about inviting teammates and the pricing math behind it. Activation slowed for new teams; the product felt heavier than the revenue lift suggested.

[Samuel_P]

It might be that the real problem isn't pricing at all but how teams see value. Do you have a strong usage signal you could measure and tie to value, like time saved or feature adoption rate, so the price feels fair to both solo users and growing teams?