Many times, startups and businesses face the same issue. They have to decide whether paying a one-time license fee is better or choosing the monthly subscription (SaaS) model. To take the right call, they have to think over certain points. Just like everything else, the monthly subscription (SaaS) model has its own sets of pros and cons so let’s have a look before deciding anything else.
Pros Of Monthly Subscription (SaaS) Model
1. No Upfront Investment
When you are a startup or a small-scale business, capital investment matters. If you go for one-time mobile app development, you will have to pay a sizable amount. It’s completely fair in its own rights yet it can dent the balance sheet of a startup adversely. That is not the case with the monthly subscription (SaaS) model
2. Quick & Easy
Any company will launch a monthly subscription (SaaS) model only when the product is completely ready. It means that you won’t have to wait for 3 to 6 months for mobile app and web development. You can subscribe and start using the software as a service within a few minutes to a few days.
3. Easy Setup & Management
As they are readymade and customized solutions, they are developed keeping various scenarios in mind. As a result, they are quite easy to set up and manage.
4. No Scaling Issues
As a monthly subscription (SaaS) model is developed keeping various scenarios and customers in mind, it has to be completely scalable. So you can subscribe for the Basic plan, to begin with. Once your business starts growing, you can opt for Plus or Premium or Enterprise model. There won’t be any issues of scalability.
5. Continuous Maintenance & Updates
A SaaS provider company will have plenty of customers using the same software so they have to be on top of things or plenty of people will suffer. So they keep fixing the bugs and updating the software. You don’t have to worry about maintenance and updates in this model.
Cons Of Monthly Subscription (SaaS) Model
Just like everything else, this model has its own set of cons too.
1. Monthly Payment
As this is a subscription model, you will have to pay every month or year. It saves you from a huge upfront investment but it binds you to pay every month. It turns out to be fine save when the actual revenue of the business or the startup is down.
2. The Generic Nature
This will be a generic solution and anyone can subscribe to it so your mobile app or website will not have the advantage of uniqueness. Most of the time it works out in the favor of subscribers, as the familiarity with the UI is a plus. Despite, lack of uniqueness can make it difficult to stay ahead of the curve in certain markets.
3. Data Privacy & Security
The actual ownership of the software lies with SaaS provider so they can access the data of your business. Ideally, the contract between you and the SaaS provider company should cover this point in detail.
Final Thoughts
When we compare the pros and cons of the monthly subscription (SaaS) model, it is amply evident that this model is a good choice for startups and small scale businesses.
DeOnDe is one of the best monthly subscription (SaaS) based Food Ordering And Delivery Solutions provider. We have plenty of satisfied monthly subscribers all over the world. If you want to know more, contact us and we will answer all your questions thoroughly.
