Ask HN: Is anybody running a successful non-subscription business?

[fandorin]

Is there anybody here who is successfully running a business that is not based on a subscription revenue model?

I have a nice side project (a macOS app) that uses a one-time fee. But very often (while listening to some podcasts about bootstrapped products) it feels like it's either subscription-based or nothing. Is there no point in having a one-time fee product? Is that correct? Am I living in a SaaS bubble?

[matt_s]

Use it as a way to differentiate yourself. One methodology I've seen used with installed apps is major upgrades require a financial renewal but those can be spaced out every couple years. I love it when I find an iOS app that is paid, without ads, without in-app purchases.

You just need to plan how that business model works and know that you won't have recurring revenue. Maybe that means you build companion apps, offer an optional subscription tier (often its cloud storage/device sharing based) or something like that.

I've thought of doing a subscription like service but its use case is more of a once-in-a-while style so an option there would be pay-per use instead of a subscription.

[skwee357]

Define successful.

I run a SaaS that relies on one time payment. The income currently covers all the expenses, and leaves me some nice pocket money.

Is this model for everyone? No. The unique proposition of my service is actually the one time payment aspect. Does everything should be subscription? No. I avoid subscriptions as much as possible, unless there is a cost involved in running the service.

So YMMV. I wouldn’t pay a subscription for a MacOS app, unless there is an ongoing operational cost for the developer.

Feel free to email me (profile -> website) if you want to chat.

[rubenvanwyk]

Is it really a SaaS if it doesn't rely on recurring subscriptions? I thought the definition of a SaaS is the recurring subscription model.

[fandorin]

Awesome, thanks, I will reach out!

[nicbou]

I earn affiliate income on https://allaboutberlin.com. It allows me to help far more people by keeping everything free. It's been my main source of income for a few years now.

AI is changing the game - it halved my traffic - but so far it's still survivable. I intend to keep going until it's no longer tenable.

[keiferski]

Just some unsolicited advice: the company I work for has benefited from AI traffic, I think because people are looking for a certain software solution to a particular problem, which we provide. In other words, they still need to visit our site to solve the problem. This is unlike many other AI queries, where the solution is a piece of information. I imagine your site is full of such information, which is why your traffic is being halved by AI.

So if it’s possible, I’d try to change your business model to something where people still need to visit your site to get their problem solved. Maybe referrals?

[fandorin]

Cool! Did AI halve your income as well? Or did it just affect the traffic (low quality traffic)?

[keiferski]

The primary alternative to monthly subscription plans is a usage-based pricing plan. In other words, your customers are still paying more than once, but when is based on how much they use it, rather than per month/year.

You could also copy many WordPress plugins, which charge a fee for the first year (which includes support and updates) but then expires afterward. So they can continue using the plugin but won’t get any new updates/support.

[herbst]

This model is how you get me as a customer. Monthly is unattractive, usage based feels fair even if more expensive

[herbst]

I dislike monthly subscriptions myself, and always look for alternatives which I then happily spend my money on.

However the business is as it is

For software I really like the patreon model (like in some game communities) monthly subscription you could cancel after downloading and if you want updates you just get another month. Big portion will just pay monthly while they wait anyway. Best for all worlds.

Otherwise I would maybe recommend a yearly price instead of monthly. Especially if the monthly would be something small anyway. Easy to forget so most people will at least pay 2 years and you save a lot in transaction costs.

[muzani]

The subscription model is VC friendly. ARR makes it easy to calculate whether this little pony can grow to become a unicorn.

You can probably make a few millions off single payment. People have for decades before subscription. Games are still doing it and games aren't even built the agile way.

[gethly]

On the contrary. Subscription-based pricing model is dying, and fast. People are tired of it. Just look up articles about how SaaS are slowly disappearing and how entrepreneurs should avoid creating SaaS if possible. People usually prefer one-time payments over monthly payments. There are exceptions, usually when the program/service is very valuable and expensive, it makes more sense to just pay for what you use, but in general single payment will always win. Also it depends whether we're talking local or remote service as remote service has inherent cost and having a single payment is not compatible with it.

Additionally, there is a distinction between single and ongoing payment in the context of usability. Specifically, it makes little sense to sell a calculator program via a subscription fee but you also reach a limit of the possible customer base. Just like mobile applications. With subscription, you can keep milking the same customer for money indefinitely, but in such case you have to keep providing some services that is worth the payment.

[keiferski]

Pretty much every major software company has monthly plans. Even apps are becoming monthly, when they were once single payment.

Where are you seeing single payments become prominent in software?

[raw_anon_1111]

What you’re saying doesn’t jibe with reality that subscriptions are dying. I wouldn’t spend time creating anything that was a one time use application if my interest was monetization and not just to scratch an itch.

[rocketpastsix]

if its dying, its dying a very slow death.

[csomar]

> Is there no point in having a one-time fee product?

You can have one-time licenses but updates require another license (ie: discounted). It is the same model of SaaS but with a different payment plan.

Unlimited/lifetime licenses are a way to either deliver a really bad product or create an unsustainable company.

[fandorin]

Well I guess this is the way forward for me.

[ohman876]

I have never built a smartphone app myself but I know one thing, if the app is useful I'll buy it again and again to get it on my new device.

Another thought, maybe your app has the potential to be extended, you can make extensions available as addons for a fee.

[JohnFen]

Yes, lots. I personally refuse to use subscription-based software, but have no trouble finding software that doesn't use that model.

[raw_anon_1111]

What are you going to do when you reach all of your addressable market?

One time payments are fine when you are in a growing market like iOS in 2009. The only long time successful Mac Indy app that I can think of without a subscription is BBedit which has been around since 1990 and made every transition along with Apple.

[bob1029]

> What are you going to do when you reach all of your addressable market?

You find a new market and/or build a new product.

The solution to "oops we sold one to everyone we can think of" is to invent new kinds of value, not ways to extort existing paid customers.

[JohnFen]

> What are you going to do when you reach all of your addressable market?

Sell upgrades, develop new products, etc.

[ApolloRising]

SuperDuper is another.

[quantdev1]

Welp. Now I’m regretting shutting down a similar business - because I felt like single product businesses were a dead end.

Sheesh.