So, I wasn’t even aware this was an option. Eager to hear more...

Oh, I’d like to know more, too.

Lets start with it is the same concept for monthly AUM (active user mgmt), but a longer seat filled term.

I think if you have a frugal-minded contract where you know that you are only getting X percentage of your company in to your platform during a time of year, then monthly AUM is to your benefit so that you can rotate different parts of the company through the doors. You figure hey - I never have that many people active in the system anyway or you have a gi-normous agency worker type of workforce where they are really in there for onboarding. You rarely throttle to your full allotment more than once or twice a year. In those certain cases having an overage bank makes sense to be accompanied with monthly AUM.

If you play certain “majority stakes” with larger workforces acting in a way that they are over a threshold that makes sense (lets say 95% of your alotted users come through are with this one side of the company)...then going with a yearly may make better sense economically. The concept behind it - count them once for the period of a year. It resets based on their usage into next year.

I think you need to consider a few different variables at the same time:

• what is your turnover rate
• are you supporting critical path learning (like everyone must come through your door as a part of policy)
• since you will rarely get a full shop to come through your system (unless they are demanded to do so), you will probably want to be below X percent of your actual units
  • So lets say we have 2500 users in your contract for an actual workforce of 3500 but the highest “majority” subsidiary is only 2500 with a few mandated programs, monthly AUM becomes a sweet spot.
    • Its when they come into the system more than once per month/year is where the benefit of either of these model pay for themselves.
    • BUT if you are expanding your userbase in anyway or are busy with a period of growth, monthly is probably considered better for you than yearly
    • If you are constricting your userbase, workforce, the benefit leans can lean towards yearly active user management

Lastly - (please do not quote me) - yearly AUM is coming in somewhat cheaper than monthly AUM...so at the very least it makes sense to visit the model with your CSM if your contract is up soon.

And maybe a disclaimer - each one of us sign into a contract differently with Docebo - your terms and user pricing can/will be different from one agreement to the next. In no way shape or form am I passing along contract advice.