Discussion on: Do you prefer one-time fee or subscription?

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Mike Healy

SaaS is ongoing. The software is hosted so the new versions, the maintenance, the hosting are all continuously provided. It therefore only makes sense to charge subscription fees, because otherwise it's essentially a ponzi scheme whereby new members are needed to finance the product for existing users.

The exception might be if you have very low maintenance and hosting requirements.

Traditional software could be 'sold' because that single fee covered the development to that point, and new versions were funded by charging for upgrades.