Nick Anisimov

Subscription or one-time payment. Which should a startup choose?

There was a lot of talk in 2023 and 2024 about startups using a one-time payment model, but earlier this year, I started to see founders going back to subscriptions. What do you think?
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Zhiqi Shi
I think an important factor to consider is the cost structure of the business. If it's a one-time investment, then a one-time payment model makes sense. However, if there are ongoing costs, a subscription-based model is clearly more suitable.
David Popescu
I think it depends on 2 main factors: 1 - How much will your users utilize your product. If it’s daily or weekly, a subscription would be ideal for both the user and the business. For other cases, one-time payments may be better 2 - What is the goal of the product. If it exists just to make some money upfront, a one-time payment may be a good option. If you want to take your startup to the next level, have VC funding, do an exit at some point, subscriptions may be better.
Shivam Singh
I think subscriptions are making a comeback for good reason. With recurring revenue, you build a more predictable income stream and a closer relationship with your customers. It also gives you the flexibility to continuously update and improve your product. That said, if you’re offering something more static where ongoing support isn’t as critical, a one-time payment could still make sense. But for most startups, subscriptions offer a more sustainable model as it builds even longer and better realtionships with users. @nickanisimov
정현 박
It's better to start with a subscription model first and then gradually introduce one-time payment options as an additional offering.