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by bluepuma77
754 days ago
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As a bootstrapped startup, we are providing SaaS products for larger business customers. We use a subscription model, which price depends on a very fixed metric of the customer. Think number of rooms in a hotel, it usually never changes. Not based on users, as that might constantly change and we don’t want customers to think about, if the new employee gets an account or not or has to share it with a co-worker. Subscription based revenues are more predictable, the user knows the price in advance, the user can easily clear the fixed budget with superiors, the accounting department knows what to expect every month, no one gets a bill shock, no one needs to worry about usage and budget. We have like no variable cost, so we don’t worry about high usage. It of course depends on the product and your target group, this works very well for us and our customers. |
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