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Flat-fee vs per-seat pricing

The pricing-model tradeoff explained in plain terms — how per-seat and flat-fee differ, and why Hoursmith chose one flat price per plan.

How a tool charges shapes how you use it. Many time trackers and SaaS tools have historically priced per seat — you pay for each person who uses the product. Hoursmith instead charges a flat fee per plan. This page explains the tradeoff in general terms so you can decide what suits you. We won't quote any other tool's prices — those change, and you should confirm them at the source.

The two models

  • Per-seat. You pay a price multiplied by the number of users. Add a person, your bill goes up; remove one, it comes down. Common across SaaS, and simple to reason about for a single user.
  • Flat-fee (per plan). You pay one price for a plan that includes up to a certain number of people. Within that limit, adding a teammate doesn't change your bill.

Neither is "right" in the abstract — they optimize for different situations.

The tradeoff

SituationPer-seat tends to meanFlat-fee (per plan) tends to mean
You're soloYou pay for one seatYou pay one plan price (often a free tier)
You add a teammateYour bill goes up per personNo change, up to the plan's limit
You add contractorsEach one is another seatIncluded, up to the limit
Your team size swingsBill tracks headcount up and downPredictable within a plan
You cross a plan limitKeep paying per seatMove up to the next plan

The honest read: per-seat can be cheaper when you're very small and staying that way, and flat-fee tends to win once you add people — especially contractors you'd otherwise pay a seat for just to log time.

Why Hoursmith chose flat-fee

Hoursmith is built for freelancers, consultants, and small agencies — and those teams grow by adding people, often contractors. We didn't want pricing to punish that. So each plan is one price for everyone up to a member limit:

PlanMembers included
Freeup to 3
Studioup to 10
Agencyup to 25

This pairs naturally with money-blind contractors: because Members never see your rates or invoices, you can add them to track time, and flat-fee pricing means doing so doesn't raise your bill. For current prices and what each plan includes, see Plans & limits or the pricing page.

Flat-fee doesn't mean unlimited — each plan includes members up to a limit. When you outgrow one, you move up to the next plan rather than paying per head. See Plans & limits.

Which is right for you?

  • Choose flat-fee (Hoursmith) if you have — or expect — more than a person or two, or you bring in contractors and don't want each one to cost a seat.
  • Per-seat may be fine if you're a solo user who'll stay solo, and a per-seat tool otherwise fits your needs better.

Either way, do the arithmetic with your real team size against current prices. For Hoursmith, that's Plans & limits; for any other tool, its own pricing page.

Ready to try flat-fee?

Start a 14-day trial, or see how the model plays out for a team in the small agencies guide.

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