Upfront vs Pay as you go pricing

overall_calc.txt

Assume you're purchasing 10 seats and you're given a discount offer of paying for seats upfront.
When does it make sense to take the deal? It depends on the discounted rate, and the growth of seat count.

Case 1: Steady state growth (1 seat a month is added):

  Plan 1: Pay per month $50 a month

    50 * 12 + 50 * 11 + 50 * 10 + 50 * 9 + 50 * 8 + 50 * 7 + 50 * 6 + 50 * 5 + 50 * 4 + 50 * 3 + 50 * 2 + 50 = $3900

  Plan 2: Pay per month $40 a month upfront

    40 * 10 * 12 = $4800

  In this case better to not take the upfront payment.

Case 2: Hypergrowth now (10 seats near the start):

...

Case 3: Projected Hypergrowth at end of term (all 10 seats near the end):

...