Why do most SaaS companies prefer subscription plans over pay-as-you-go?

Saihhold Zhao
2 replies
In my opinion, the pay-as-you-go model is a fair option for both companies and customers. For instance, I have never subscribed to Grammarly because I don't use it frequently. However, if they offered a pay-as-you-go option, I would consider purchasing credits. πŸ™‹β€β™€οΈ So, why do most SaaS companies prefer subscription plans over pay-as-you-go?

Replies

Donna Wood
Why do most SaaS companies prefer subscription plans over pay-as-you-go? πŸ€” Well, subscription plans provide stable revenue streams, encourage customer loyalty, and allow for better long-term planning. πŸ’‘πŸ“ˆ
Ruby Martin
Why do most SaaS companies prefer subscription plans over pay-as-you-go? It seems that subscription models offer a predictable revenue stream, encourage customer loyalty, and allow for continuous product improvements and updates. πŸ’ͺ