# Seat-based versus usage pricing

A term used when buying saas.

Whether customers pay per person or per unit of what they consume, which sets how revenue moves.

Seat-based revenue is predictable and shrinks in a layoff; usage revenue tracks the customer's own volume and can fall without anyone cancelling. The distinction decides how much of a forecast a lender should believe and how quickly a bad quarter reaches you. Read a full year of monthly revenue by account rather than the annual total, and ask which contracts carry minimums, because a minimum is the difference between a floor and a hope.

Part of: Buying a SaaS Business (https://searchspheresource.com/guides/buying-a-saas-business)

Source: https://searchspheresource.com/guides/buying-a-saas-business/terms/seat-based-versus-usage-pricing
Not dated: The same editorial definitions as the glossary, inside a trade.

Site index for machines: https://searchspheresource.com/llms.txt