Revenue
Per-User Pricing
Definition of
Per-user pricing is a pricing model in which the cost of a product or service is based on the number of users who will be accessing it. This means that each user is charged a specific fee, and the total cost of the product or service will increase as more users are added. For example, a software company might offer a per-user pricing plan for its project management tool. They might charge each user $10 per month, and if a company has 10 employees who will be using the tool, the total cost would be $100 per month. If the company then hires 5 more employees who will also need access to the tool, the cost would increase to $150 per month. Per-user pricing is often used in software and online services, but can also be seen in other industries such as telecommunications and consulting. It can be a cost-effective way for companies to pay only for what they need, rather than paying for a flat rate that may not be fully utilized.
