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What is the difference between contacts and seats?

A ‘Seat’ is a user whom you have added via settings and has full rights (to upload content, etc within your account.  They will also appear as a contact.

A ‘Contact’ is someone who you have added as a contact (to share content with) or who was synced when you imported or connected a list.  

Contacts have no rights within your organisation except for any content viewing rights you have assigned to them.