The “Seat” is Dead: 5 Surprising Truths About Monetizing Software in 2026

Feb 19, 2026 /Mpelembe media/ — Most SaaS founders approach their billing infrastructure with the same level of strategic rigor they use to pick lunch: they go with what’s familiar, what’s easy, or what their neighbor recommended. But in 2026, treating billing as a back-office utility rather than a core product feature is a recipe for subsidized growth and eventual insolvency. For a company at $2M in Annual Recurring Revenue (ARR), the cost of this “lunch-pick” mentality is staggering—up to $100,000 lost every year due to billing errors, missed renewals, and failed payments.We have entered a landscape where the “physics of compute” has rewritten the rules of the game. As venture-backed startups navigate a world dominated by AI and usage-driven models, the traditional seat-based license has become a relic. To thrive, founders must move past simple subscription summaries and understand that monetization is now a continuous discipline of research, iteration, and negotiation. Continue reading →