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Subscription Revenue - User/Seat Based Pricing

Learn how to forecast revenue based on user or seat count.

Updated over 2 years ago

In Finmark there are a few different ways to model user/seat based pricing. In order to know which is best for your use case, the first step is to explain how Finmark recognizes Customers.

"Customers" in Finmark are determined by the Revenue streams created for Subscription products. When creating Revenue streams for One-time Purchases, Finmark will hold this data as "purchases."

  • This route will classify the number of companies as customers

  • Use this option, if your end customers are the companies/businesses that are made up of users.

  • This route will classify the number of users as customers.

  • Use this option, if your end customers are the number of individual users.

  • This route will also classify your customers as the number of active users, but will allow for easier adjustments to your number of active users.

  • Use this option if your customers are the number of active users & and your user counts can vary greatly


Option 1:

Step 1: Set up the following Variables:

  • Average Number of users

  • Number of Active Companies

  • Total Active Users - Average Number of Users * Number of Active Companies

  • Price Per User


Step 2: Add your First Product:

Here you will set your price as: Price per User * Number of Users


Step 3: Add your Revenue Stream

You can choose any revenue driver, in this example I am going to use a custom formula and reference my custom variable "Number of Active Companies"

NOTE - I have used a formula to increase my company count by 2 every month, shown below:

Your Customer information will show as follows:

Option 2:

Step 1: Set up the following Variables:

  • Average Number of users

  • Number of Active Companies

  • Total Active Users - Average Number of Users * Number of Active Companies

  • Price Per User

Step 2: Add your Product

Here you can either use a static number for your price, or you can reference your price variable.

NOTE: If you are wanting to test different pricing assumptions or if your price is set to change over time, we suggest adding a pricing variable.

Step 3: Add your Revenue Stream

When adding your revenue stream, you will use the Custom Formula option, as shown below, using the following formula:

= Number of Active Companies * Average Number of Users

This is how your customer data will show:


Option 3:

Step 1: Set up the following Variables:

  • Average Number of users

  • Number of Active Companies

  • Total Active Users - Average Number of Users * Number of Active Companies

  • Price Per User

Step 2: Add your product

Here you can either use a static number for your price, or you can reference your price variable.

NOTE: If you are wanting to test different pricing assumptions or if your price is set to change over time, we suggest adding a pricing variable.

Step 3: Add your Revenue Stream

When adding your revenue stream, you will use the Custom Formula option, as shown below, using the following formula:

Total Number of Active Users

This is how your customer data will show:

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