SaaS Companies Love Subscription Pricing. Do Small Businesses?

Subscription pricing has taken over the SaaS world. It makes sense for software companies—predictable revenue, higher lifetime value per customer, and the ability to constantly improve and iterate on the product. But let’s be real: do small businesses love subscriptions as much as SaaS companies do?

The Subscription Overload Problem

Think about it. A small business owner today is likely paying monthly fees for:

• Website hosting (Wix, Shopify, Squarespace, etc.)
• Email marketing (Mailchimp, ConvertKit, etc.)
• Project management tools (Trello, Asana, Monday.com, etc.)
• Accounting software (QuickBooks, FreshBooks, Xero, etc.)
• CRM (HubSpot, Salesforce, Pipedrive, etc.)
• Cloud storage (Google Drive, Dropbox, OneDrive, etc.)

That’s not even counting industry-specific software! These subscriptions add up fast. A study by Cleo found that the average small business spends $4,500 per year on SaaS subscriptions. Another report from Blissfully states that mid-sized companies use an average of 137 SaaS apps, up from 80 in 2018. That number keeps growing every year, meaning costs are increasing too.

Why Do Small Businesses Tolerate This?

Despite the high costs, small businesses stick with subscription software because:

It’s convenient. Pay a monthly fee, and you get access to all features with support.

Many popular tools only offer subscriptions—there’s no alternative.
SaaS companies keep adding features, making their software better over time.
But just because something is popular doesn’t mean it’s the best option for every business. In fact, a growing number of entrepreneurs are actively looking for alternatives.

The Shift Towards One-Time Payments & Lifetime Deals

With rising SaaS costs, small business owners are starting to look for software they can pay for once and own forever. This is where lifetime deals and one-time purchase software come into play.

Lifetime Deals: A Middle Ground

Some software companies offer lifetime deals (LTDs) where you pay once and get access forever. Platforms like AppSumo have built an entire marketplace around LTDs. These deals can be a win-win:

• Users save money over time.
• Startups get an influx of cash early on.

However, LTDs come with risks. If the company doesn’t have a sustainable revenue model beyond the initial sale, they may struggle to maintain the software in the long run.

One-Time Purchase Software: The Old-School Alternative

Before SaaS, buying software meant paying a one-time fee. Remember Microsoft Office before Office 365? You’d buy a copy, install it, and use it for years.

Some companies still use this model. Examples include:

• Affinity Designer (one-time purchase vs. Adobe’s subscription)
• DaVinci Resolve (paid version for a one-time cost vs. Adobe Premiere Pro)
• JetBrains (offers perpetual licenses after one year)

The challenge? These tools often lack continuous updates, cloud features, or integrations with modern ecosystems. But for many small businesses, owning software outright still makes more sense financially.

The SaaS Model Isn’t Going Away, But It Needs to Evolve

SaaS isn’t inherently bad. It has revolutionized software accessibility. But for small businesses drowning in monthly fees, there needs to be a better balance. Here are some potential solutions:

1. Hybrid Pricing Models

Imagine if SaaS companies let you choose how to pay. Want a subscription? Great. Prefer a one-time fee with limited updates? That’s an option too. This kind of flexibility would make SaaS more accessible to businesses of all sizes.

2. More Open-Source and Self-Hosted Tools

Some businesses are moving to open-source alternatives they can self-host, avoiding ongoing costs. Examples include:

• Matomo (Google Analytics alternative)
• ERPNext (ERP software)
• Odoo (business apps suite)

Self-hosting isn’t for everyone, but it gives businesses complete control and eliminates recurring fees.

3. AI-Powered No-Code/Low-Code Builders

What if businesses didn’t need expensive SaaS tools at all? What if they could build their own custom software, tailored to their exact needs, without hiring a developer?

Enter Fuzen.io: Build Your Own Internal Automation Software (Without Recurring Fees)

This is where Fuzen.io comes in. Instead of paying for yet another subscription, what if you could just talk to an AI assistant , explain your requirements, and have it build an internal automation tool for you? Whether it’s a CRM, inventory management system, workflow automation, or any other business software, Fuzen can build it for you.

Here’s how it works:

You describe your software needs to the AI assistant.
The assistant builds the first version for you.
You can customize or tweak it further by continuing the chat.
You pay for the subscription or pick from pre-built templates in Fuzen’s marketplace (also one-time cost).
No coding. No hiring developers. No monthly fees draining your budget.

Final Thoughts

SaaS subscription pricing works for some businesses but is a growing burden for others. The rise of lifetime deals, one-time purchase software, and AI-powered app builders like Fuzen.io are giving small businesses more options than ever.

According to a 2023 survey by Gartner, 77% of small businesses are reconsidering their SaaS subscriptions due to rising costs. If you’re tired of paying for software every month, it might be time to rethink how you approach your tech stack. Maybe the future isn’t just about subscribing to software—maybe it’s about owning the tools that power your business.