Beyond Subscriptions: Thriving with One-Time Payment Software Models

In an era increasingly dominated by subscription services, many developers and entrepreneurs find themselves questioning the viability of one-time payment models for their software, especially for desktop or mobile applications. The perception often is that if it's not subscription-based, it's not sustainable.

However, a deeper look reveals that non-subscription businesses, while facing different challenges, can absolutely be successful and even thrive. They can also serve as a key differentiator in a crowded market where consumers are experiencing 'subscription fatigue'.

Embracing Non-Subscription Models

The core challenge with one-time payments is generating predictable, ongoing revenue to fund development, maintenance, and support. This is where hybrid and clever one-time models come into play:

Major Version Upgrades: A proven method is to charge for significant new versions, perhaps every 1-3 years, while providing bug fixes for the current version for free. This balances ongoing value with new revenue. Offering existing customers a discounted upgrade path can build loyalty.
Usage-Based Pricing: For services where usage varies, a pay-per-use model can be more attractive than a flat subscription. This feels fair to customers and aligns cost with value derived.
Time-Limited Support and Updates: A popular approach, particularly for plugins or themes, is to charge a one-time fee that includes a specific period (e.g., one year) of updates and support. After this period, the customer can continue using the product but must renew their license to receive further updates or support.
Optional Subscription Tiers: If your product has an element that incurs ongoing costs (like cloud storage, syncing across devices, or premium features requiring server infrastructure), offer these as optional subscription add-ons. The core app remains a one-time purchase.
Add-ons and Extensions: Create modular additions to your core product that can be purchased separately. This extends the product's lifecycle and revenue potential without forcing a subscription.

Navigating the Challenges

One of the main concerns with one-time payment models is what happens when you reach market saturation. The advice here is not to 'extort' existing customers for recurring payments on a feature-complete product, but rather to:

Build New Products: Once a product is mature and sales plateau, innovate and create new offerings, or find new markets to tap into.
Focus on Quality and Marketing: For consumer-focused products, the lifecycle can be short. It’s suggested to build quickly (e.g., a few months), then dedicate significant time to marketing and promotion. If successful, plan for the next product rather than getting stuck in endless feature development for an older one-time app.

An important distinction is the difference between bug fixes and new features. Users generally expect bug fixes to be free for a reasonable period, while new features or major compatibility updates (e.g., for new OS versions that break old functionality) can justify a paid upgrade.

Subscription Models: The Other Side

It's important to acknowledge why subscriptions are so prevalent, especially in B2B. They provide predictable Annual Recurring Revenue (ARR), which is attractive to investors and allows businesses to budget for ongoing development, support, and infrastructure costs. Businesses often prefer subscriptions for software as it simplifies procurement and provides assurance of continued support and updates.

However, for consumer applications, the sentiment against subscriptions is growing. Many users will actively seek out one-time purchase alternatives. For applications that are largely feature-complete or don't incur significant ongoing operational costs for the developer, a subscription can feel like an unfair drain.

The Future of Pricing

The debate highlights that no single pricing model fits all products. While subscriptions offer stability for specific types of services (especially B2B or those with significant ongoing infrastructure costs), one-time payment models, particularly with strategic upgrade paths or hybrid options, remain a strong and often preferred choice for many users and can lead to successful, sustainable businesses.