Seat Minimums
Set minimum seat counts to protect revenue while keeping plans flexible.
Quick checklist
- Define a minimum seat floor per tier.
- Align seat minimums with onboarding cost.
- Use seat minimums to reduce churn risk.
- Review seat minimums quarterly.
- Document exceptions clearly.
Step-by-step
- Estimate support and onboarding cost per account.
- Set a minimum seat count to cover costs.
- Compare seat minimums to usage-based alternatives.
- Model ARPA impact by segment.
- Update pricing page with clear seat rules.
What to watch
- Low minimums allow unprofitable accounts.
- High minimums reduce SMB conversion.
- Hidden minimums create disputes.
Common mistakes
- Using the same minimum for all segments.
- Ignoring ramp periods for new accounts.
- Treating minimums as temporary discounts.
