Definition
Per active user pricing charges based on active users rather than total seats.
Why it matters
It aligns pricing with actual usage and reduces friction for teams with many inactive seats.
Pricing implications
If activation is low, per active user pricing can reduce revenue. Use minimums or base fees to protect margins.
Measurement tips
Define what counts as active (login, action, or usage threshold).
Checklist
- Define the active user threshold clearly.
- Track active vs total seats by plan.
- Use minimum fees to recover fixed costs.
- Publish active user definitions on the pricing page.
- Monitor revenue impact vs seat pricing.
- Avoid ambiguous activity windows.
- Review active thresholds quarterly.
- Align metrics with billing systems.