Walling: Seat-based pricing works best when users see different data
Rob Walling · Episode 655 | Seat-Based Pricing, Can Churn Be Too Low? and More... · Apr 4, 2023 · at 4:46
Rob Walling explains the fundamental mechanics of per-seat pricing models to a SaaS founder struggling with credential sharing.
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“The basic piece of how to avoid login sharing is usually that if two people log in from the same company, they need to see something different. Right? In order to charge by seat. So if you think about logging into a CRM like Salesforce or Close or even like Trello, if I log in, I see my tasks, and if my co-founder logs in, they see their tasks. That makes it really easy to charge per seat. Versus, let's say you have an email service provider like MailChimp or Drip. If two people log in from the same company, they see the same thing. There's no customization. So that's like the, I say, the standard rule for when to charge Per seat.”
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