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Be sure to consider the accounting & customer service costs of whatever model you choose. A one-time fee is is easy to administer, while a recurring cost is an
by promethean 17y ago
Be sure to consider the accounting & customer service costs of whatever model you choose. A one-time fee is is easy to administer, while a recurring cost is an order of magnitude more complex, and recurring costs with roll-over and top-up ability yet another order of magnitude more complex-- And not just from your side, but the mental burden it inflicts on the user. Recurring costs, no matter how small, always present a greater mental barrier to purchase than a one-time fee.
- paulhart 17y agoThis is a great point. I'll need to talk to some accountant-types before going forward with this so I can understand what I can and can't book as revenue in this model. It seems clear that spent credits are revenue, but unused credits live in a kind of gray area, waiting for something to happen. There may have to be an expiry, but I'll make it distant enough that it's unlikely to be hit (i.e. a year). If people look like they're going to hit that expiry period, I'd rather tell them "you're giving us money for something you don't seem to use, maybe it's time to cancel".