Seat-based billing is best when you charge customers a rate per user or license. Common examples are software or services, where the customer pays a fee for every person using that service.
You can define multiple types of seats and charge different prices for different tiers. For example, you might offer "Viewer" and "Developer" licenses, priced at $10/seat and $25/seat accordingly. Each could be reduced at higher volumes.
How seat-based billing works
Usage-based billing is charged in arrears, based upon the data received during the billing period. Therefore, usage-based billing represents actual usage.
Seat-based billing is charged at the beginning of the billing period, based upon the data received during the previous period. For example, if the end of the previous period included 5 Viewer licenses and 8 Developer licenses, those values are used to calculate the invoice for the new billing period.
If you add a seat during the billing period, Metronome generates a new invoice that charges the customer for the new seat. The amount is prorated for the number of days left in the billing cycle. For example, if 4 additional Developer licenses are added halfway through the cycle, an invoice for $50 is created ($25/seat 4 seats 0.5 billing period).
Removing seats does not affect the current billing period or create a credit. But the next billing period reflects the reduced number of seats.