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The problem with a subscription model is that there is a mathematical limit to how much MRR you can make. You can configure the limit by changing pricing, marke
by withinboredom 4y ago
The problem with a subscription model is that there is a mathematical limit to how much MRR you can make. You can configure the limit by changing pricing, marketing, etc, but then that effects churn. There is simply no way to bypass this limit, no matter what you do unless you can remove churn completely, which is not possible with a subscription model.
With a one-off purchase, you can sell the same thing to a customer multiple times, you can sell upgrades, and you "magically" remove churn.
You own a SaaS, how long do your customers stay customers? If it's 8 months, sell a one-off purchase for the cost of 16 months. Bam, you've made more than you ever would from an average customer, and you don't have to hunt them down and try to get them to stay a customer. You can just focus on building an awesome product and not worry about churn at all. In a year or so, think about a new feature or two that increases the value of your product, sell that new feature (eg, discounted) to existing customers and increase the price for new purchases.