Subscriptions vs One-Time Licenses: Are Subscriptions the Future of Business?
In the not-too-distant past, everything we wanted, we purchased – CD, DVDs, books and more. Then came subscription services. All our favourite movies, music and software, suddenly came bundled at lower, pay-per-month prices.
Today, even traditionally one-time-purchase software like Microsoft Office and Adobe Creative Suite are offered with subscription options – and this is a step forward for the businesses that rely on these services.
Perhaps the biggest benefit to subscription models is the lower pricing. For example, event organisers that provide creative services to clients used to spend thousands of dollars on graphic design and photography software for their designers. Today, they can get access to the same software suite for anywhere between $50 to $120 a month.
Low barrier to entry
Lower prices also mean lower barriers to entry. This is especially so for small businesses (as many event companies tend to be) that value the flexibility of having healthy monthly cash flow. In many cases, even if a one-time license is the “cheaper” option in the long-run, businesses may find that the lower monthly subscription option works better for them.
Most straightforward accounting
Speaking of cashflow, subscription models also make accounting simpler – especially when looking at profits and losses on a monthly or quarterly basis. Many times, companies can avoid choosing solutions that will be beneficial to their business, simply because they want to avoid placing a significant dent in their quarterly profits with purchasing licenses worth thousands of dollars.
This short-term mindset can stagnate the growth of a company but is still often done due to the pressure of showcasing short-term results on company balance sheets. Monthly subscriptions take care of this concern.
Always have the most updated solution
The fuss-free nature of subscription services extends to its use as well. In traditional “one-time purchase” models, businesses would receive a product, software or solution “as is”. When an updated version of that solution is released, the company’s investment would immediately depreciate as it becomes the “second best” version of the solution.
Not so with solutions on subscription models, as businesses will always own the very latest version of the solution available. At Angage, our event and meeting solutions – such as Angage and our mobile Event App – are constantly updated. In 2019, the Event App underwent a significant refresh which added more functionality and flexibility for event organisers to take advantage of. Meanwhile, Angage.live was very recently updated with a quiz functionality, which is proving to be very effective at increasing audience engagement levels.
All these enhancements, of course, are always available to our customers on Day 1 of their release – thanks to our flexible and affordable subscription models.
Interested in knowing more about how you can easily afford our solutions with a subscription? Or perhaps you’d like to take a solution for a test drive? Simply contact our friendly Angage consultants for more information.