Fynn GloverCo-Founder & CEO, Schematic · Co-founder & CEO of Schematic | Runtime monetization infrastructure for SaaS & AI companies

What's the strategy behind Vercel's seat-based pricing?

26 Dec 2024 · 1 min

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In this brief segment, the speaker questions Vercel's seat‑based pricing model. He notes that the seat‑based charge seemed like an afterthought when reviewing his account, and speculates that it may simply be a way to bill low‑usage customers via credit‑card transactions. He doubts that this model contributes a meaningful share of Vercel's revenue and argues that, for an infrastructure‑focused service, such a pricing structure appears misaligned with the value delivered.

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I mean, like, it's a good question on the seat-based stuff. You know, it's funny because when you said the seat-based stuff, I actually just like, when, you know, I was reviewing this and I, you know, when I was going to our account, like, I just, it didn't even occur to me that was seat-based actually. It's like such an afterthought here. I don't know. I mean, I wonder if they just like want to get a credit card and it's like one way to charge people like that aren't using the product that much. Like I can't imagine this is like any meaningful percentage of their revenue. Right. And so like, I don't really know why they do that. Um, I agree. It's like for an infrastructure type service seems super misaligned with the value they deliver.