The Death of the Seat-based SaaS Pricing Model

With the emergence of AI, the Seat-based pricing model in SaaS is going to die.

In prior editions of The GTM Lever, I covered some key macro level views of the shift that is happening with AI, this includes our reference blueprint of how we’ve shifted from the Spreadsheet-era → SaaS-era → (and now) the AI-era.

In earlier editions of this newsletter, I covered:

• How to Transform a SaaS Platform to an Agentic Platform

• How to Compete in SaaS During the AI-era

• How AI-first SaaS Companies are Disrupting Traditional SaaS

• The Road Ahead For Traditional SaaS Platforms and Value Creation

In this edition, we’re going to talk about the biggest value driver in this shift: The SaaS Pricing Model. With AI, SaaS as a business model will emerge stronger than ever. Agents are software. They’ll operate in the Cloud. And Customers will buy them as a Service. Simple. However, the traditional Seat-based pricing model is going to die. So, I will be walking you through three things about this big pricing model shift:

1. The historical precedent for this shift

2. Why this is a good thing for SaaS today

3. and How you can embrace it (and profit).

Let’s dig in…