The Official SaaStr Podcast: SaaS | Founders | Investors cover image

SaaStr 395: Why Seat Based pricing Will Die and Volume Based Pricing Is Optimal, How To Structure Pipeline Meetings Most Effectively & How To Think Through Demand Gen Strategically with UserTesting CEO Andy MacMillan

The Official SaaStr Podcast: SaaS | Founders | Investors

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The Future of Pricing in Enterprise Sales

consumption based pricing is really around modeling your pricing after driving you know usage or adoption of the product at scale and I think that's fundamentally different in some ways from the traditional seat based model. It actually incentivizes consumption at scale but it's all about how I set up and model the usage expectation right nobody wants to be surprised we all know this with our cell phone bill at the end of the month so there's a real challenge with the marginal cost model of something like a seat based pricing model when you think about net expansion inside companies.

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