·4 min read
MVP Pricing: Subscription vs One-Time Payment
The pricing model affects everything from cash flow to product decisions. Choose deliberately.
Subscription Model
Pros
- •Predictable recurring revenue
- •Higher lifetime value per customer
- •Easier to raise funding (ARR metrics)
- •Ongoing relationship with customers
Cons
- •Churn is a constant battle
- •Slower initial cash flow
- •Need to keep delivering value
- •More complex billing logic
One-Time Payment
Pros
- •Cash upfront
- •No churn to manage
- •Simpler to explain and sell
- •Works for finite products
Cons
- •Need constant new customers
- •Lower lifetime value
- •No recurring revenue for valuation
- •Less reason to improve after purchase
Which to Choose
| Choose Subscription If | Choose One-Time If |
|---|---|
| Ongoing value delivery | Complete product at purchase |
| Data or content updates | Standalone tool |
| Building for enterprise | Selling to individuals |
| Need predictable revenue | Need cash now |
Hybrid Models
- •Lifetime deals: One-time for early adopters, subscription later
- •Credits system: Buy credits, use over time
- •Freemium: Free tier with paid upgrades
- •Pay once, subscribe for updates
For most SaaS MVPs, subscription makes sense. For tools, templates, and courses, one-time often works better.