Subscriptions vs. One-Time Payments: A Developer's Honest Take

I recently built an AI video generator: textideo.com that runs on a one-time payment model (no subscriptions, ever 🙌). If that sounds up your alley, feel free to take a look! I might do a follow-up post soon sharing how the numbers are looking.

Really appreciated this breakdown, especially the part about psychological friction. I’m leaning toward a credit model for my own tool too—quick question: do you offer bundles at different price points or just a flat pack? Curious how that affects conversion.

I'm personally so over the subscription model. Even though I completely understand it from a business perspective, sometimes I just want to pay for the app, and use it at my own pace. Totally fine if this means it uses local storage over cloud storage and such.

So basically any Adobe app, with no cloud storage. Like in the good old days, one time payment. Any upgrade I deem worthy, will cost me a bit, fine.

I liked this article. Thank you so much.

Hey Smoteria,

Thanks for sharing your thoughts—this was a really insightful read.

A few years ago, I worked on a product as a growth marketing specialist, supporting areas like marketing strategy, analytics, and experimentation. Over time, it became clear that one of the main barriers to growth was the monetization model, which had been set up long before I joined.

The company offered both a subscription and a one-time payment option. But this flexibility came at a cost: we struggled to increase revenue, couldn’t justify ad spend, and found it difficult to hire more developers to push the product forward.

Interestingly, data showed that subscription users ended up paying several times more over time than one-time buyers. That realization led us to introduce a “paid lifetime updates” model—essentially an annual upgrade fee for users who had purchased the product outright. It nearly doubled the LTV of those one-time buyers and gave the product a second life.

Regarding your article, I think you’re touching on a few distinct pricing models that are often lumped together:

• Credit-based (pay as you go, usage-based)
• One-time (pay once, use forever)
• Subscription (recurring payments)

Each has its place depending on the value delivery. Like you said, if the product delivers ongoing value, subscriptions make sense. If the value is tied to usage or transactions, a credit model fits well.

Some companies—like Brevo, for example—combine models to match different user needs, and I think that’s a smart approach when possible.

Happy to continue the conversation if you want to dive deeper.

Really loved this write-up. Every pricing model does feel like a bet, and I really appreciated how you framed both the logic and the lived experience behind each approach.

I'm currently built a product [ Tuneit for slack app] where I'm leaning toward a credit-based model too—somewhere between transactional and subscription. The idea is to offer flexibility without the pressure of monthly billing, but I’m still figuring out how to balance value delivery with revenue predictability.

Would love any feedback on how I can make this model work well—or things I should be thinking about early on.

Thanks again for sharing this—it’s both validating and super helpful.

Great take. Subscriptions make sense when there’s ongoing value or support, but not every product fits that mold. For dev tools or productivity software (especially ones that automate things quietly in the background), the value can feel “invisible” over time even if it’s still doing a lot.

While working on an AI Copilot for engineering teams, we debated this too. It runs behind the scenes to reduce manual overhead, but since it’s not front-and-center daily, we wondered: would users feel the value every month?

Still figuring it out, but this post sparked a few new thoughts—thanks for sharing! Curious how others have handled this balance of silent impact vs. visible value.

I personally prefer subscriptions over lifetime as subscriptions gives more flexibility and room for your apps to grow.

SaaS that provide a variety of services and have the capacity to increase or decrease its limits based on the requirements of the user would be better suited if they chose the monthly subscription.

Totally agree with this direction. I’ve just finished building a desktop app that automatically pulls invoices from Gmail, organizes them into folders, and sends them to the accountant . with review checkpoints in case something needs correction. It also includes a local CSR model and screenshot capturing. There’s even support for adding an API key so an internal agent can manage everything easily.

Recently, I’ve started realizing that offering a one-time payment model makes more sense . not just for developers but for users who are exhausted by endless subscriptions. I’m also building a community of users who genuinely appreciate tools like these, and I’m excited to release many of the internal tools I’ve built for myself.

Later on, I plan to offer optional paid add-ons to unlock extra features. But the base app will stay local-first . the user powers the machine, and I’m not running models for them on my server. This keeps things lightweight, private, and under their control.

I have a whole drawer full of helpful tools like this, and I’m passionate about releasing them to save people money and make their work easier. Would love to connect with others thinking the same way.

Totally valid perspective! One-time payments offer simplicity for both developer and user and can build trust faster, especially for utility or niche tools. But subscriptions help with long-term sustainability and consistent updates. Ultimately, the best model depends on your product’s value cycle: is it a one-time solution or an ongoing problem?

Insightful✨, it all comes down to the model of business, for example, OTT requires Subscriptions, whereas e-commerce relies on a time payment.

Interesting topic! I think the key with subscriptions is helping users understand why they need to keep paying—especially when you're continuously delivering value, which also means continuous costs on your side.
That said, for tools that don't require ongoing costs to maintain, I believe one-time pricing is ideal—for both users and makers.
For example, Adobe CC is subscription-based, while Affinity is a one-time purchase. I chose Affinity.

Great topic. Can someone list few examples of one time purchase? These days everything is subscriptions.

"Great insights on the subscription vs one-time payment debate! I completely agree that while subscriptions provide more predictable revenue, they also come with ongoing pressure to provide value continually. On the other hand, one-time payments offer more immediate gratification but lack that long-term customer engagement. It’s all about finding the right balance for your product and audience. Thanks for sharing your honest perspective!"

Totally resonate with this! As a dev, I’ve always leaned toward building tools I’d want to use — and honestly, most of the time, I’d way rather just pay once and be done. Subscriptions make sense for ongoing services, but for focused tools or utilities, one-time feels fairer and way less stressful (for both sides). Also love how it cuts down on churn drama and gives users a sense of ownership. Refreshing to see more indie devs thinking this way too.

This is such a refreshing and balanced take! As someone who runs Honistablog — where we explore app tools, performance tips, and digital trends — I’ve seen both subscriptions and one-time payments play a role depending on the audience and product type.

As a buyer, I don’t like subscriptions. I don’t want people taking my money when I can’t justify a daily necessity for it.

So why would I, as a developer, put the same feeling to my users?

That’s how I see it. If I use it everyday and can’t live without, I subscribe. If not, heck no.

I don’t have any subscriptions in my household. Not even Prime. Yea, you heard it right. The one in 100 in my neighborhood who doesn’t have a Prime. If I need something from Amazon, I put it in my cart and wait…until I need something else and the total becomes >$35. As a user it’s pretty freeing that way. Makes me feel good.

I want my users to feel good for the value for their money too.

Totally relate to your mindset.

As a solo dev myself, I’m not chasing a multi-million dollar SaaS either. What matters more to me is building something simple, useful, and being able to live in peace—without turning into a full-time support agent.

The credit-based, non-subscription model is such a cool move—less friction for users, and way less stress for us. Feels more flexible and fair for everyone involved.

Thanks for sharing this—really refreshing to see someone walking this path too

From the perspective of a buyer I definitely feel a one-time payment is simpler as I don't have to worry. However, if I haven't heard of the company/person that developed the tool before and I have not been able to try it can feel like a bit of a risk.

So yeah, overall I agree!

Totally agree with your approach! As a solo founder myself, I’m also more focused on shipping useful tools rather than maximizing MRR at all costs.

For my B2B research service, I chose a pay-per-task model (no subscription) — people can just get the help they need, when they need it, and move on. Much less support overhead and pressure for both sides.

Have you noticed customers prefer this one-time model over monthly plans? I’d love to hear if you ever tried switching back and forth!

As someone who regularly uses subscription-based tools and services, I can say that, in general, I much prefer a one-time payment over a monthly or yearly subscription.

Of course, there are exceptions - mainly when the software is expensive and it’s hard to justify a large upfront cost (especially if I’m not sure whether I’ll still need it after 5-7 months). But still, one-off pricing feels simpler, clearer, and more user-friendly.

What I absolutely dislike are hidden or silent recurring payments. Once, I subscribed to a VPN service and used it for about a year. I stopped needing it and forgot about it - only to later discover that they had continued charging me an annual fee for six more years without even sending an email notification. I only noticed this by accident when checking my transaction history. Since then, I’ve grown even more cautious and skeptical of subscriptions.

So yes, I completely agree with you - one-time pricing is often much more convenient and customer-friendly.

Well, i like subscriptions as per the developer perspective when a user takes a weekly, monthly or annual. I think the user will not churn and if he likes my service he'll renew it once again. That motivates me and boosts me. For one time payment i don't know how longer someone will be using app but will it benifit me for that time period, these questions come to my mind.

Interesting...

My platform at developin runs on subscriptions but for good reason - we want project creators to feel incentivised to continue working on their projects and the continued support from subscriptions can even generate stable income vs one time payments, but definitely see the value in one time payments for handy saas tools etc

I totally agree, at least for some cases. It is just ridiculous how everything is nowadays a subscription, even the GPS! Do you want to be able to use it on your Android Auto? Pay every month! What? No way. But if it was a one time deal, I would totally be up for paying.

Interesting read!

I always see people saying lifetime accounts only last for the lifetime of the company, or if they decide to stop offering them.

For some companies, I would say this is true, I needed lifetime cloud storage, for example, and was wondering which one I should choose, in the end I chose Internxt, as they offer a lot more features than other lifetime plans I saw, and they're open source so at least the code is always there.

I think the key to lifetime plans is offering a diverse product suite to gain interest.

Really appreciate this breakdown—it hits so many of the tradeoffs I’ve been wrestling with too. As a solo dev myself, I totally relate to valuing simplicity and peace of mind over chasing MRR at all costs.

I launched my app with a small one-time fee just to validate demand, and honestly, it felt more aligned with my values and the mental health space I’m working in. That said, I’m slowly exploring a freemium + optional upgrade model to balance reach and sustainability.

Love the credit-based approach you mentioned—feels like a solid middle ground.

Rightly said, one-time payments are far better for templates and all.

Interesting post! One time payment option could be good if I don't put any LLM functions in the product.

Really appreciate this breakdown. As someone working in the home care space, we see both pricing models play out, especially with software tools aimed at small agencies. Subscriptions make sense for platforms that are deeply embedded into workflow (like scheduling, EVV, or billing), but for lightweight tools or single-purpose utilities, the one-time model often wins trust faster.

In our world, most agency owners are not VC-chasing SaaS buyers... they're time-starved operators juggling compliance and staffing issues. A pay-once, use-forever model feels more aligned with their mindset.

I think your credit-based approach is smart, especially for indie products that solve a specific pain point without needing to be a full ecosystem.

very cool. whats your project though? and what's your main channel for finding customer as I imagine, with one offs, you're always looking for new customers?

I feel this in my bones.
I’ve been building a fully-local AI tool lately, precisely because I’m tired of the SaaS subscription spiral. Everything is either bloated or forces recurring payments.
One-time purchases feel fairer for both sides if you’re creating real value. It’s like handing someone a blade they can sharpen forever, instead of renting them a dull knife every month.
Curious how others here have handled this trade-off: stick to one-time and let go of MRR, or build optional upgrades later?

interesting take! if it does not cost API pricing then a lifetime deal would be a great option to do!

I’m a noob in this money-making game. This article is great for beginners like me to follow the right path. Thanks!

I totally agree, at least for some cases. It is just ridiculous how everything is nowadays a subscription, even the GPS! Do you want to be able to use it on your Android Auto? Pay every month! What? No way. But if it was a one time deal, I would totally be up for paying.

Cheers to building on your own terms...

Some time half of time the subscription are wasted due to technical gliches and tt timeline

I just tried out this site and honestly, it perfectly matches how I like to spend money — no subscriptions, just pay-as-you-go.
I love that I can just top up when I need it, without wasting money on a monthly plan.

For just $9.90, I was able to generate a bunch of videos that I’m really happy with — it saved me so much time on editing.
Super impressed. I genuinely like this platform.

This aligns with my thought too.

See when I build a product, I like to put myself in the users shoe and try to tailor it to what I would like to do within the defined constraints.

I have a couple of downloadable templates on Gumroad - https://mosnyik.gumroad.com/l/edulaunch-kit-premium is one of them and they are all one-time payments.

I figured that makes the user able to make the best of the product and focus on shipping fast rather than having to bother about subscriptions. But then again, it is because of my product type - it makes sense to buy it one time off.

Really resonates. We’re seeing a similar shift in enterprise sales. What used to be pitch decks and theoretical ROI is now turning into hands-on demos, prototype walkthroughs, and fast iteration.
We’ve been leaning into tools that help teams prototype fast and validate real use cases before the second meeting even happens. App Idea Engine (https://appideaengine.com/) does that for us. One thing that’s helped: creating a prompt library that sales and product teams can reuse to tailor demos quickly without rebuilding from scratch. Speed plus context is turning into the new sales edge.

Does anyone run a DFY system with subscription only? Most common I've seen is up front one time payment with monthly retainers. It's a barrier to entry if up front cost is high for a company with low turnover. Keen to hear thoughts

Absolutely resonate with this, Smoteria. The tension between recurring revenue and one-time simplicity is so real.

I’m currently building WalleAgent, a Chrome extension that auto-generates smart replies for Twitter, Reddit, and LinkedIn. Initially, I leaned toward a subscription model—SaaS muscle memory, I guess. But early feedback flipped that fast:

“I don’t need this every week. I just want to use it when I’m doing a product launch or ramping up outreach.”

That insight pushed me to adopt a credit-based system. Users buy a pack, use it whenever, and don’t worry about ongoing billing. For my solo-founder bandwidth and the async usage pattern, it just made more sense.

What I’ve noticed:

Conversion rate went up (less commitment = more yes).

Support burden went down (no monthly churn anxiety).

People are happier knowing they’re in control.

That said, I still believe subscriptions are great when the product has an always-on nature (like uptime monitors or newsletters).

Thanks for putting this all into words—especially the psychological angle. Curious: do you see credit-based models as a kind of “middle ground” or just a niche fit?

Thank you for sharing your thoughts on this, super useful. I've been struggling with this questions for months. I totally agree with your opinion that one time payments are not dead. If I look at my own behaviour: I'm also quite hesitated to close another subscription.

Most tools nowadays have some sort of AI integration and that means also continuous costs. That's the reason why I started subscription based features in my app.

Is that the reason you created this credit based variant? To limit those costs?

Really enjoyed this write up your honesty about the ups and downs is refreshing!

From what I’ve seen around the indie scene (especially on r/devs):

“One-time costs are neither more nor less ethical than subscriptions. What matters is the value that you provide.”  

That nails it. For standalone tools a one-off price is clean and satisfying. But once you add hosting, syncing or AI, stuff that keeps running in the background - subscriptions just make sense to cover ongoing costs and effort.

A hybrid model often feels most human: one-time fee for the core, subscription for extras. It respects users and developers.

do you lean one way or the other based on your product type?

Really thoughtful take — totally agree that subscriptions can feel like a constant battle to justify value, especially for solo devs. Love the credit-based model idea; it strikes a nice balance between fairness and flexibility for users.

As a developer, I actually lean more toward subscriptions — not because I love charging people monthly, but because it gives me more breathing room to improve the product over time. One-time payments are great for users, but they often leave little margin for long-term maintenance, support, or iteration. Subscriptions help make the effort feel more sustainable, especially for solo builders trying to make a living from their work.
Just my two cents — as a dev, I tend to favor subscriptions. Not trying to nickel-and-dime users, but they give me room to keep building, improving, and supporting things long-term. Otherwise, it’s tough to justify the time investment, especially when flying solo.

Totally agree — I personally prefer one-time payments too. Your tool looks solid so far, keep it up! We're all in this together 💪

Interesting read! As an indie dev, I totally get the appeal of one-time payments. Less churn, less pressure. I'm all about keeping things simple!

Really interesting take! As a fellow indie dev, I resonate with the simplicity of one-time payments. Less churn, less stress. Gotta love that!