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We also use this model (software subscription). One thing that is very important is that never, under no circumstance be tempted to sell perpetual licenses eve

We also use this model (software subscription). One thing that is very important is that never, under no circumstance be tempted to sell perpetual licenses even if there is demand for them. If you do subscriptions you should do only subscriptions.

acct1771 9y ago
Thanks, that's advice you're probably giving for a good reason you've experienced, I'm assuming! Any other insight into your experiences/troubles? How you decided on pricing, whether it had any impact on sales/sales efforts, what you had to do to support such a model? Thanks very much for your time!
- antaviana 9y ago
  We transitioned from freeware to subscription (it's B2B), a subscription model shares a lot with freeware logistics, for example most users are in the last version. Another advantage has been to be able to add features any time it was fit, no need to save them for the big upgrade. We decided a price at the beginning (EUR 99/year) that we thought would allow us to expand our offering under the same subscription umbrella. We run several promotions to experiment with pricing (in particular a Dutch action which was very successful at EUR 29/year, that brought a big revenue spike and also many new paying customers). But even after experimenting with good results we always stuck with our EUR 99/year price point. Due to the rather low price pint, we chose not do any type of customer segmentation (all customers pay the same per user, regardless of quantity of users). We do not do promotions anymore to avoid confusing users with pricing (since it is a subscription, we want to avoid that users wait for the next promotion to renew). Curiously very few potential customers ever asked for a permanent license. We have a extremely generous trial 30 days of actual use, not calendar days. Conversion at the end of trial is high, about 30%, probably because by the end of trial, users probably found a few use cases that somehow justify the price.

acct1771 9y ago

Thanks, that's advice you're probably giving for a good reason you've experienced, I'm assuming! Any other insight into your experiences/troubles? How you decided on pricing, whether it had any impact on sales/sales efforts, what you had to do to support such a model? Thanks very much for your time!

antaviana 9y ago
We transitioned from freeware to subscription (it's B2B), a subscription model shares a lot with freeware logistics, for example most users are in the last version. Another advantage has been to be able to add features any time it was fit, no need to save them for the big upgrade. We decided a price at the beginning (EUR 99/year) that we thought would allow us to expand our offering under the same subscription umbrella. We run several promotions to experiment with pricing (in particular a Dutch action which was very successful at EUR 29/year, that brought a big revenue spike and also many new paying customers). But even after experimenting with good results we always stuck with our EUR 99/year price point. Due to the rather low price pint, we chose not do any type of customer segmentation (all customers pay the same per user, regardless of quantity of users). We do not do promotions anymore to avoid confusing users with pricing (since it is a subscription, we want to avoid that users wait for the next promotion to renew). Curiously very few potential customers ever asked for a permanent license. We have a extremely generous trial 30 days of actual use, not calendar days. Conversion at the end of trial is high, about 30%, probably because by the end of trial, users probably found a few use cases that somehow justify the price.