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by anilshanbhag 699 days ago
Merchant of record can be really big - the biggest issue today is price. 5% + 50c doesn't make sense if you are selling $5 per month subscriptions.

Reduce the price to Stripe pricing + 1%, and this will be the default for everyone!

2 comments

It does make sense if and if the following apply: (a) you have touched the brand and trust it over other offerings (b) are tech-literate but semi-technical or non-technical or simply don’t want to do anything more than a couple of clicks implementation (c) you are early enough in your journey that sales and revenue matter more than cost of revenue (d) any of the above originally but you solved those problems and now intertia/tech debt somewhere more urgent.

That’s a huge number of aspirational digital product vendors.

5 + 50 vs stripe’s lower direct take (for me 1.5 + 20). I just did a quick calculation on a really basic/modest digital product business. Sell something at €25 and sell €50k - 2000 customers. That’s going to be €7k with LSqz over a year, and with Stripe it’s going to be €1.15k

The difference is €16 a day.

The business makes you €137 a day.

If you spend a day each month sorting out admin and taxes because of stripe direct plus a few days paying a developer (you’re non-technical remember!) then that could easily be a cost of €5500 a year. Total cost including card processing is €6150 and it’s only €850 less than LemonSqueezy.

Why would you move?

And in particular why would you move sooner than 3 years if you are predicting similar revenue each year.

this! im selling a subscription with this pricing model and it’s quite painful to swallow. having that said i really enjoy using lemon as my payment processor
Are there no alternatives
Paddle is the other big one I'm aware of.