Most software products nowadays use subscription models for monetization. Be it streaming services of any kind or mobile, web and desktop apps.
From a producer perspective the subscription model makes a lot of CENTS.
As a consumer there are many advantages to it as well - a product who makes a lot of money is more likely to stay around longer, and to get actively and continously developed.
However, there are limits to how many subscriptions most people will pay for.
For the big names this should not be too much of a problem. But what about new names entering the market? How likely is it that many people will pay another subscription for a product of a yet-unknown-name company?
Just looking at reviews of software you can see a lot of people getting tired of subscription models. Will the heavy use of the subscription model over the last few years lead to a point, where most people will be too fed up with it, to use (new) products who rely on it for monetization?
Instead of simply going back to selling software for a one-time payment, what alternatives might be there for producers? Alternatives, that make as much if not more CENTS, but also may appeal more to consumers who may grow more and more tired of this model?
One possible solution - and something many already do - is to offer the option for a lifetime subscription, additionally to recurring ones. So besides a monthly and yearly subscription, you offer a one time payment option that grants a lifetime subscription to the product, for example for 1.5x the price of the yearly subscription.
Something else that could work, depending on the product, is a form of microtransactions. So, for example making the basic verison of your product free, but offering add-ons the user can pay to use. This has the advantage of being able to offer a multitude of additional features for a one-time or a reccurring payment, while at the same time giving the user more power over what they actually need and therefore want to pay for.
What do you think? Is this model going to reach a point where it could be difficult for new names in the market to use it for their monetization? What may be good alternatives or additions to this model?
After all, having a user friendly monetization strategy will benefit you in the long run - and setting yourself apart from the mass who run subscription models may prove to be quite valuable.
From a producer perspective the subscription model makes a lot of CENTS.
As a consumer there are many advantages to it as well - a product who makes a lot of money is more likely to stay around longer, and to get actively and continously developed.
However, there are limits to how many subscriptions most people will pay for.
For the big names this should not be too much of a problem. But what about new names entering the market? How likely is it that many people will pay another subscription for a product of a yet-unknown-name company?
Just looking at reviews of software you can see a lot of people getting tired of subscription models. Will the heavy use of the subscription model over the last few years lead to a point, where most people will be too fed up with it, to use (new) products who rely on it for monetization?
Instead of simply going back to selling software for a one-time payment, what alternatives might be there for producers? Alternatives, that make as much if not more CENTS, but also may appeal more to consumers who may grow more and more tired of this model?
One possible solution - and something many already do - is to offer the option for a lifetime subscription, additionally to recurring ones. So besides a monthly and yearly subscription, you offer a one time payment option that grants a lifetime subscription to the product, for example for 1.5x the price of the yearly subscription.
Something else that could work, depending on the product, is a form of microtransactions. So, for example making the basic verison of your product free, but offering add-ons the user can pay to use. This has the advantage of being able to offer a multitude of additional features for a one-time or a reccurring payment, while at the same time giving the user more power over what they actually need and therefore want to pay for.
What do you think? Is this model going to reach a point where it could be difficult for new names in the market to use it for their monetization? What may be good alternatives or additions to this model?
After all, having a user friendly monetization strategy will benefit you in the long run - and setting yourself apart from the mass who run subscription models may prove to be quite valuable.
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