a single source, nothing corroborates it · contested
Check the subscription actually suits the buyer
Recurring revenue is attractive to the seller, which is exactly why the model gets chosen without examining whether customers want to buy that way. One argument is that knowing most of last month's customers will pay again makes the income far less risky than any alternative. The other is that buyers do not care how software is delivered, so the model has to be tested against the niche and the product rather than assumed.
Where this splits
Tringas picks subscription over every other small business model on risk grounds, while Jackson argues the choice has to be checked against the customer and the niche rather than made for the founder's cash flow.
1 claims against 1
Justin Jackson
Check the subscription suits the customer and niche
- 01Do not choose the subscription model just because you want recurring revenue or a single deployment target; check that it suits your customers, your product, your niche and current market conditions.
Pick subscription, recurring revenue is the least risky model
Choose a subscription model over the other small-business models, because knowing most of last month's customers will pay again makes the income far less risky.
What it returned
Michael Buckbee's point that businesses do not care whether software is delivered as a service or on the desktop - only about cost and value.
Judged riskier by the author: ebooks, evergreen content, affiliate deals, drop-shipping, e-commerce and ad revenue
Sources
- SaaS is ripe for disruptionJustin Jackson · justinjackson.ca · Should you start a SaaS in 2016? · undated
- Chapter 1: What Is Micro-SaaS & Why Should You Read This - Tyler TringasTyler Tringas · tylertringas.com · Time Leverage: The Magic of Recurring Revenue · 2016-05-11 · dissenting
the second source
Three plays a week, for the phase you are in
No roundup of links, no news. Three tactics more than one builder arrived at separately, with the numbers each one returned and the disagreements left in.
More in pricing
- Make them pay before the thing exists8 unconnected · contested
- Decide whether a free tier earns its keep7 unconnected · contested
- Put a cheap rung below the expensive offer7 unconnected · contested
- Undercutting alone is not a position7 unconnected · contested
- Turn the service into a product with a public price7 unconnected
- Charge for the result, not the hours6 unconnected · contested