One time payment OR Monthly subscription
Vertika Nigam
11 replies
Both types of models work in the digital product industry today.
What do you prefer?
For Cxful, we're going for One time payment model with lifetime updates.
For reference - Cxful is a UIUX Suite and Design System for complete, consistent and functional website experiences.
(You can support us for the launch on Product Hunt if your want)
Your thoughts on this? Questions for me?
Replies
Business Marketing with Nika@busmark_w_nika
When the product is affordable for me, I am going for onetime purchase.
Share
Launching soon!
@busmark_w_nika So products that you can get with one-time payment -- they appeal the most to you. Is it?
Have you seen or observed any trends around this?
@vertikanigam yes, because I do not have to pay every month and overpay it :D one-time payment is good for first users when you release product because you promise them all benefits in the future and they can test the product. We have something similar.
When considering payment options, businesses often weigh the merits of one-time payments versus monthly subscriptions. Each model has its advantages and potential drawbacks depending on the specific context and goals of the organization.
One-time payment:
Provides immediate full revenue
Simplifies accounting with a single transaction
May appeal to customers who prefer ownership
Can reduce ongoing administrative costs
Monthly subscription:
Offers predictable recurring revenue
Potentially increases customer lifetime value
Lowers initial barrier to entry for customers
Allows for regular engagement and upselling opportunities
The optimal choice depends on factors such as:
Nature of the product or service
Target market preferences
Cash flow requirements
Long-term business strategy
Ultimately, the decision between a one-time payment and a monthly subscription model should align with both the company's financial objectives and the customers' needs and preferences. Some businesses may benefit from offering both options to cater to different customer segments.
Launching soon!
@jpgohil93 Great points. Sometimes the nature of the product is such that you can't have monthly subscriptions.
So, what appeals to you the most when making a buying decision?
I prefer one-time payments as that promises me I'll get the full package out of the box.
I understand monthly subs for a business, but I don't like them because I have to remind myself to check and see if the prices don't change over time. It's another thing I have to monitor on top of all other subscription payments, which can be annoying.
Depends on which one time price is sustainable for the business. The difficulty with one time payment is that in order to keep the business profitable you need:
1) more growth
2) release new products periodically (or sell new versions of the same product)
You need growth with SaaS too, but hypothetically you just need to beat churn.
A more sustainable way of implementing one time payment, is to limit updates for 1 year: Customers can keep using the product afterwards, but if they want new features, they'll need to pay again.
In my personal experience, one-time payment is less frustrating as a customer, however, if the cost is too high for a one-time payment I'd rather pay a monthly subscription.
That said, having too many subscriptions is unsustainable over time and creates a lot of friction, eventually, I'll prioritize value and start canceling subscriptions, or use them only for 1 month and bounce.