Use it as a way to differentiate yourself. One methodology I've seen used with installed apps is major upgrades require a financial renewal but those can be spaced out every couple years. I love it when I find an iOS app that is paid, without ads, without in-app purchases.
You just need to plan how that business model works and know that you won't have recurring revenue. Maybe that means you build companion apps, offer an optional subscription tier (often its cloud storage/device sharing based) or something like that.
I've thought of doing a subscription like service but its use case is more of a once-in-a-while style so an option there would be pay-per use instead of a subscription.
The primary alternative to monthly subscription plans is a usage-based pricing plan. In other words, your customers are still paying more than once, but when is based on how much they use it, rather than per month/year.
You could also copy many WordPress plugins, which charge a fee for the first year (which includes support and updates) but then expires afterward. So they can continue using the plugin but won’t get any new updates/support.
I dislike monthly subscriptions myself, and always look for alternatives which I then happily spend my money on.
However the business is as it is
For software I really like the patreon model (like in some game communities) monthly subscription you could cancel after downloading and if you want updates you just get another month. Big portion will just pay monthly while they wait anyway. Best for all worlds.
Otherwise I would maybe recommend a yearly price instead of monthly. Especially if the monthly would be something small anyway. Easy to forget so most people will at least pay 2 years and you save a lot in transaction costs.
I run a SaaS that relies on one time payment. The income currently covers all the expenses, and leaves me some nice pocket money.
Is this model for everyone? No. The unique proposition of my service is actually the one time payment aspect. Does everything should be subscription? No. I avoid subscriptions as much as possible, unless there is a cost involved in running the service.
So YMMV. I wouldn’t pay a subscription for a MacOS app, unless there is an ongoing operational cost for the developer.
Feel free to email me (profile -> website) if you want to chat.
On the contrary. Subscription-based pricing model is dying, and fast. People are tired of it. Just look up articles about how SaaS are slowly disappearing and how entrepreneurs should avoid creating SaaS if possible. People usually prefer one-time payments over monthly payments. There are exceptions, usually when the program/service is very valuable and expensive, it makes more sense to just pay for what you use, but in general single payment will always win. Also it depends whether we're talking local or remote service as remote service has inherent cost and having a single payment is not compatible with it.
Additionally, there is a distinction between single and ongoing payment in the context of usability. Specifically, it makes little sense to sell a calculator program via a subscription fee but you also reach a limit of the possible customer base. Just like mobile applications. With subscription, you can keep milking the same customer for money indefinitely, but in such case you have to keep providing some services that is worth the payment.
What you’re saying doesn’t jibe with reality that subscriptions are dying. I wouldn’t spend time creating anything that was a one time use application if my interest was monetization and not just to scratch an itch.
What are you going to do when you reach all of your addressable market?
One time payments are fine when you are in a growing market like iOS in 2009. The only long time successful Mac Indy app that I can think of without a subscription is BBedit which has been around since 1990 and made every transition along with Apple.
People on HN act like it’s so easy to reach all the addressable market.
Most software, especially in the world of mobile/desktop apps are usually feature-complete. The problem is that developers keeps redesigning and refactoring them to justify development, rather than focusing on another product or marketing efforts.
Free bug fixes are generally expected. But nobody forbids you from releasing v2 and charging for it again (for example with upgrade discount).
Is it a “bug” when Apple releases a new OS/phone that either breaks backwards compatibility or does something like release the iPhone 5 and changes the form factor making your app look janky? This was when Apple released frameworks to allow phones of different sizes around 2012?
Or more recently should users expect a free upgrade when Apple deprecated 32 bit apps?
The Mac sees a lot less churn than iOS. But things do happen that cause apps not to work there. The most recent is that Electron was using a private API and all apps that used that version of Electron on Macs broke.
When you buy a physical product, do you expect the company to stand behind the quality of their product by providing (limited) warranty and/or support, despite the fact that this won't bring the company any new income?
Nobody forbids you from selling your software with an asterisk that says "works on X.Y version of MacOS, future releases will require a new license".
And if no one new is buying your product, I think you need to ask yourself whether you have a sustainable business or a hobby.
Use it as a way to differentiate yourself. One methodology I've seen used with installed apps is major upgrades require a financial renewal but those can be spaced out every couple years. I love it when I find an iOS app that is paid, without ads, without in-app purchases.
You just need to plan how that business model works and know that you won't have recurring revenue. Maybe that means you build companion apps, offer an optional subscription tier (often its cloud storage/device sharing based) or something like that.
I've thought of doing a subscription like service but its use case is more of a once-in-a-while style so an option there would be pay-per use instead of a subscription.
The primary alternative to monthly subscription plans is a usage-based pricing plan. In other words, your customers are still paying more than once, but when is based on how much they use it, rather than per month/year.
You could also copy many WordPress plugins, which charge a fee for the first year (which includes support and updates) but then expires afterward. So they can continue using the plugin but won’t get any new updates/support.
This model is how you get me as a customer. Monthly is unattractive, usage based feels fair even if more expensive
I dislike monthly subscriptions myself, and always look for alternatives which I then happily spend my money on.
However the business is as it is
For software I really like the patreon model (like in some game communities) monthly subscription you could cancel after downloading and if you want updates you just get another month. Big portion will just pay monthly while they wait anyway. Best for all worlds.
Otherwise I would maybe recommend a yearly price instead of monthly. Especially if the monthly would be something small anyway. Easy to forget so most people will at least pay 2 years and you save a lot in transaction costs.
Define successful.
I run a SaaS that relies on one time payment. The income currently covers all the expenses, and leaves me some nice pocket money.
Is this model for everyone? No. The unique proposition of my service is actually the one time payment aspect. Does everything should be subscription? No. I avoid subscriptions as much as possible, unless there is a cost involved in running the service.
So YMMV. I wouldn’t pay a subscription for a MacOS app, unless there is an ongoing operational cost for the developer.
Feel free to email me (profile -> website) if you want to chat.
Awesome, thanks, I will reach out!
On the contrary. Subscription-based pricing model is dying, and fast. People are tired of it. Just look up articles about how SaaS are slowly disappearing and how entrepreneurs should avoid creating SaaS if possible. People usually prefer one-time payments over monthly payments. There are exceptions, usually when the program/service is very valuable and expensive, it makes more sense to just pay for what you use, but in general single payment will always win. Also it depends whether we're talking local or remote service as remote service has inherent cost and having a single payment is not compatible with it.
Additionally, there is a distinction between single and ongoing payment in the context of usability. Specifically, it makes little sense to sell a calculator program via a subscription fee but you also reach a limit of the possible customer base. Just like mobile applications. With subscription, you can keep milking the same customer for money indefinitely, but in such case you have to keep providing some services that is worth the payment.
Pretty much every major software company has monthly plans. Even apps are becoming monthly, when they were once single payment.
Where are you seeing single payments become prominent in software?
That's my feeling as well. I wonder who says that SAAS is dying.
What you’re saying doesn’t jibe with reality that subscriptions are dying. I wouldn’t spend time creating anything that was a one time use application if my interest was monetization and not just to scratch an itch.
I have never built a smartphone app myself but I know one thing, if the app is useful I'll buy it again and again to get it on my new device.
Another thought, maybe your app has the potential to be extended, you can make extensions available as addons for a fee.
Yes, lots. I personally refuse to use subscription-based software, but have no trouble finding software that doesn't use that model.
What are you going to do when you reach all of your addressable market?
One time payments are fine when you are in a growing market like iOS in 2009. The only long time successful Mac Indy app that I can think of without a subscription is BBedit which has been around since 1990 and made every transition along with Apple.
> What are you going to do when you reach all of your addressable market?
You find a new market and/or build a new product.
The solution to "oops we sold one to everyone we can think of" is to invent new kinds of value, not ways to extort existing paid customers.
People on HN act like it’s so easy to build a product that can be a sustainable business.
Software especially with Apple and always needs maintenance. Should people expect free updates?
People on HN act like it’s so easy to reach all the addressable market.
Most software, especially in the world of mobile/desktop apps are usually feature-complete. The problem is that developers keeps redesigning and refactoring them to justify development, rather than focusing on another product or marketing efforts.
Free bug fixes are generally expected. But nobody forbids you from releasing v2 and charging for it again (for example with upgrade discount).
Is it a “bug” when Apple releases a new OS/phone that either breaks backwards compatibility or does something like release the iPhone 5 and changes the form factor making your app look janky? This was when Apple released frameworks to allow phones of different sizes around 2012?
Or more recently should users expect a free upgrade when Apple deprecated 32 bit apps?
The Mac sees a lot less churn than iOS. But things do happen that cause apps not to work there. The most recent is that Electron was using a private API and all apps that used that version of Electron on Macs broke.
It's the cost of running a business.
If no one new is buying your product and you are just supporting one time pay users, why would a developer be incentivized to keep doing updates?
When you buy a physical product, do you expect the company to stand behind the quality of their product by providing (limited) warranty and/or support, despite the fact that this won't bring the company any new income?
Nobody forbids you from selling your software with an asterisk that says "works on X.Y version of MacOS, future releases will require a new license".
And if no one new is buying your product, I think you need to ask yourself whether you have a sustainable business or a hobby.
> Should people expect free updates?
Bug fixes, yes. Other updates, no.
For how many years?
> What are you going to do when you reach all of your addressable market?
Sell upgrades, develop new products, etc.
SuperDuper is another.
Welp. Now I’m regretting shutting down a similar business - because I felt like single product businesses were a dead end.
Sheesh.
> Is there no point in having a one-time fee product?
You can have one-time licenses but updates require another license (ie: discounted). It is the same model of SaaS but with a different payment plan.
Unlimited/lifetime licenses are a way to either deliver a really bad product or create an unsustainable company.
Well I guess this is the way forward for me.