Seat Based Billing Models

In addition to usage-based billing, Schematic enables you to implement seat-based billing models, with the ability to:

• Include a base number of seats in the plan
• Override the base number of seats for a specific company
• Allow customers to purchase additional seats at a per-seat price

Pricing models for Seat Based Billing

The 2 most common pricing models for seat-based billing are Pay in advance and Overage.

Pay in advance

Traditionally, pay in advance models have been the most common pricing model for seat-based billing. In pay in advance models, customers purchase a number of seats up front, and then can use them as needed. If a customer has hit their limit and requires more seats, they must complete a checkout flow to purchase additional seats.

Overage

Recently, overage models have become more common for seat-based billing. In overage models, customers are charged a per-seat price for each seat they use beyond the base number of seats included in the plan. Instead of requiring a checkout flow to purchase additional seats, customers simply use as many seats as they need, and are charged accordingly at the end of the billing period. The lower friction to add seats has made this popular for products like Figma.