# Plan a move from seat-based to usage-based pricing

A pricing transition plan covering the value metric, revenue impact by customer, migration path, and risks.

- Topic: Business Strategy & Startups
- Framework: RTF
- Level: Standard
- Tags: Finance, Plan, Fill-in Template
- Source: https://www.thinkwithprompt.com/prompts/plan-a-move-from-seat-based-to-usage-based-pricing

## Prompt

```text
Help me plan a move from per-seat pricing to usage-based or hybrid pricing for my SaaS product.

**Current pricing:** [plans, price per seat, discounts]
**Candidate usage metrics:** [e.g. API calls, records processed, active contacts, compute minutes]
**Customer usage data:** [summary or table of seats vs usage by customer, or "not available"]
**Cost to serve per unit of usage:** [if known]
**Why we're considering this:** [seat compression, AI features with variable cost, competitor pricing, expansion]
**Constraints:** [contract terms, billing system limits, sales comp tied to seats]

Work through:
1. Value metric test: for each candidate, does it track customer value, scale with their success, stay predictable for budgets, and stay easy to measure and explain?
2. Model options: pure usage, platform fee plus usage, committed-use with overages, credits, or seats plus usage tiers.
3. Revenue impact: using my data, show which customer segments would pay more or less, and the effect on ARR. If I gave no data, give me the exact table I need to build.
4. Forecastability: how revenue recognition, ARR reporting, and forecasting change with variable revenue.
5. Migration path: new customers first, grandfathering, renewal-based switch, notice periods.
6. Internal changes: billing and metering, usage dashboards for customers, sales compensation, finance reporting.
7. Risks: bill shock, revenue dip, customers throttling usage, and guardrails such as caps and alerts.

Return a recommendation with the 2 best options compared in a table, a phased rollout plan, and the experiments to run before committing. Do not invent customer numbers.
```

## What to fill in

- plans, price per seat, discounts
- if known

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