Subscriptions vs Pay as you go
Given I was recently pitching Pay as you go very religiously in a market which was dominated by subscriptions, here are my 2 cents on all the learnings I had:
Founders love pay as you go
- They have one less monthly recurring bill on their mind
- One less place where they have to worry about under utilization of the subscription
Sales teams hate pay as you go
- Seeking management approval on every credit exhaustion - nightmare if there's a lot of management layers involved
- Adds one more opportunity for conversation in terms of credit justification for every recharge - they are too used to making decisions on an annual basis for tools - justification maths at the end of FY
How are we navigating this?
As a bootstrapped business we have now have shifted to having both subscription, pay as you go - as a bootstrapped business we cannot rely on behavior change, we need cash now - convert all possible clients
I believe with AI impacting workforce, people will get more outcome focused and any inefficient will be wiped out where it can be.
Would love to hear your thoughts in case if you have done a similar experiment at your end!
I have attached our previous pricing page which now has been deprecated, there were outliers of course, but this was the general trend I saw across some 60 sales calls I did, there are a lot more nuances that I can write about this topic, kept it short - happy to answer in comments
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