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What is the difference between a User and a Seat?

A Pipedrive subscription is like a bus — in that it helps your company get to where it needs to go — and that it is made up of specific people occupying seats to get there. 
A bus may have thirty seats, but only four people riding at this moment. In Pipedrive, these riders can leave the bus or be invited to come aboard at any time. 

Within Pipedrive, those riders are your users — your account can have more seats than users, but each user will always occupy a seat in your account.
As Pipedrive subscriptions are calculated based on the number of active seats, you can choose the size of your bus, and how many people are riding the bus at any time.