One time payment OR Monthly subscription

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.

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.