AgencyFlo
Insights

by Jonny Stuart, CEO - AgencyFlo9 Apr 2026

Why per-seat pricing punishes growing agencies

Why per-seat pricing punishes growing agencies?

When you hire five people, your software bill goes up by five seats. Here is what per-seat pricing actually costs a 15 to 30-person agency - and why the model penalises growth at the worst possible moment.

Why per-seat pricing punishes growing agencies
When you hire someone new at your agency, most costs are one-time or variable. Equipment, onboarding time, a few weeks before they are fully productive. The ongoing cost is their salary, which is the point. You hire because the revenue they generate should outpace what you pay them.

Per-seat software pricing adds a different kind of cost. Every new hire automatically increases your software bill. Not because you have asked for more capability. Not because you are using more of the platform. Just because the team is larger.

At 10 people, this feels manageable. At 20, it starts to compound. At 30, you are paying materially more for the same software you had when you were half the size - and the costs scaled at exactly the moment your margins were already under pressure from growth.

Key takeaways

  • Per-seat pricing means every new hire raises your software bill automatically.
  • You pay more even though you are not using more of the tool.
  • At 20 or 30 people the extra cost really starts to add up.
  • The bill grows just when growth is already squeezing your margins.

About the Author

Jonny Stuart

CEO - AgencyFlo

Jonny is the founder of AgencyFlo and previously ran a 15-person product studio. He writes about agency operations, margin, and the closed-loop tooling shift that makes both possible.

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