FoundersOnly

Subscription, one-time or usage-based: how did you choose your model?

#1

The model shapes the business as much as the number does.

Subscription. Predictable revenue that builds month on month. Requires the product to keep delivering, and churn becomes the number you watch.

One-time payment. Easy to sell and no churn to manage. Revenue restarts from zero each month, so you need a steady flow of new buyers or new things to sell.

Usage-based. Price follows value closely and customers can start small. Revenue is harder to predict and bills can surprise people.

Lifetime deal. Cash early. A long tail of support for customers who will never pay again.

Hybrid. A base subscription plus usage, or a one-time product plus a paid update or support plan.

Questions that point to an answer

  • Does the customer need it every month, or once?
  • Do your own costs rise with each customer's usage?
  • Is the buyer a company with a budget or a person with a card?
  • How does the customer already pay for the alternative?

Reply with your model, why you chose it, and whether you have changed it.

Your perspective belongs here.

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