Comparison of one time purchase to subscription model
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SaaSOne Time
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MarketingLess proof (marketing) up front requiredMore proof (marketing) up front required
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MarketabilityWide market, see the product and figure out your use caseFor high utility / specific use case
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Discovering use casesMore optimized for easy entry -> better customer development opportunitiesNot as many "odd" use cases outside of your marketing will drop in
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Customer ServiceEasier to respond to mistakesDo you want to update?
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AffordabilityMore people can afford it since it's financedLess people can afford it
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$ segmentation to optimize for more money nowCan be optimized for one-time (annual plan)Can't be backward optimized
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From a trial / conversion prespective, optimized for Concorde biasA lot better optimized since it's easier to become an "owner"You're either an owner or not. After you pay, you are very invested though (but that doesn't help you from a trial / conversion standpoint)
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Assuming that LTV of customer is 1 year and = the one time purchase cost your are debating against
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& that your product makes sense as saas. It also makes sense for a one-time purchase that works online as well. That's why I didn't include up-selling opportunities as an adv for saas models.
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These are the things that came to my mind, might not make sense in use cases that i'm not thinking about
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navid@breezi.com
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http://www.quora.com/What-are-the-pros-and-cons-of-software-subscription-vs-perpetual-license/answer/Navid-Safabakhsh
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