ZAM

Per-Seat Pricing

The hidden costs of per-seat pricing as your team grows

I've seen many owner-operators struggle with the concept of per-seat pricing as their businesses grow. It seems like a simple model at first: pay for each user, and you're done. But as I've worked with numerous clients, I've come to realize that this model can quickly become a major burden.

As the founder of ZAM, I've had the opportunity to work with a ~200-employee owner-operated business, replacing 21 SaaS tools with a custom operating system that has $0 ongoing cost. This experience has given me a unique perspective on the true cost of per-seat pricing.

The Illusion of Scalability

One of the biggest issues with per-seat pricing is that it creates an illusion of scalability. As your team grows, you simply add more seats, and the cost increases linearly. However, this linearity is deceptive, as it doesn't account for the complexity and overhead that come with managing multiple SaaS tools.

I've seen businesses struggle to keep track of which tools are being used by which employees, and how many seats they actually need. This can lead to wasted resources and unnecessary expenses.

The Hidden Costs of Integration

Another hidden cost of per-seat pricing is the cost of integration. As you add more SaaS tools to your stack, you need to integrate them with each other, which can be a time-consuming and expensive process.

I've worked with clients who have spent thousands of dollars on custom integrations, only to have them break when one of the tools updates its API. This can lead to a never-ending cycle of integration and maintenance costs.

  • Custom integration costs
  • Maintenance and update costs
  • Opportunity costs of wasted time and resources

The Value of Ownership

At ZAM, we believe that ownership is key to avoiding the pitfalls of per-seat pricing. By building a custom operating system that you own, you can avoid the costs of integration and maintenance, and focus on what matters most: growing your business.

With a custom operating system, you can also take advantage of AI and automation to streamline your processes and reduce costs. We've seen clients use 25+ AI agents to automate tasks and improve efficiency.

A Better Way Forward

So what's the alternative to per-seat pricing? At ZAM, we recommend building a custom operating system that you own, and using AI and automation to streamline your processes.

This approach may require more upfront investment, but it can pay off in the long run by reducing costs and improving efficiency. As I've seen with our clients, it's possible to achieve $0 ongoing cost and focus on growing your business without the burden of per-seat pricing.

In conclusion, the real cost of per-seat pricing is more than just the cost of each seat. It's the cost of integration, maintenance, and wasted resources. By building a custom operating system and using AI and automation, you can avoid these costs and focus on what matters most: growing your business.