Subscription vs One-Time Payment Models
Which is right for your software? We analyze the pros and cons of the SaaS revolution vs standard licensing.
By Olivia King · Product Strategist
· 1 min read
Strategy
The allure of Recurring Revenue (ARR) is strong. It increases business valuation and provides predictable cash flow. However, some customers suffer from "subscription fatigue".
One-time payments can yield a higher immediate cash injection and attract users who hate subscriptions. The right choice depends on your product's ongoing value delivery (e.g., server costs, updates).