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It depends on how often you deliver value and what costs you have. If you have recurring costs that increase in size with your user base, then charge a proport
by destraynor 13y ago
It depends on how often you deliver value and what costs you have.
If you have recurring costs that increase in size with your user base, then charge a proportionate recurring fee.
If it's a game that someone buys, plays for a week and moves on to the next, a subscription won't work, because there's no continuous value. So you charge up front, deliver all your value up front, and get busy working on your second game.
If you're thinking big applications (e.g. Photoshop) then your question becomes about things like distribution, retention, sales channels, competitors etc.
Bluntly You can take $2k every 2-3 years assuming people upgrade to your latest release, or you can take $50 per month every month assuming people stay. Both work out similar.
The advantage of the $2k model is that you get big money up front which you can re-invest in more customer acquisition (or your next release). The drawback is that $2k isn't a "no-brainer" sale, it needs approval, you need a good brand, and you're limiting your addressable market a good bit.
The advantage of the $49 per month is that it's a zero risk try-out, people will convert far far easier. The disadvantage is retention.
Product to product I'd give different advice, but in general, recurring is easier to plan a business on.