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Why we decided NOT to go with a standard subscription-only model

Hey Indie Hackers! 👋

We are now in the early stage with Pytch — an AI-powered tool designed to help startups scan tech blogs, find relevant journalists who cover their niche, and draft personalized PR pitches.

Like many indie builders, our initial plan was to copy the standard template: a Free Tier, a time-limited trial, and a Pro subscription to start building recurring revenue (MRR).

However, during our early preparation, we realized that forcing a "default" subscription-only model might not align with how founders actually do PR.

Here is the logic behind why we chose a hybrid Subscription + Pay-As-You-Go model for our launch instead.


1. The Free Tier Trap (Why we chose a restricted trial instead)

Because Pytch runs live background parsing (fetching articles to verify journalists' recent topics) and uses LLM APIs to extract clean metadata, every single search has a direct, transaction-based cost for us.

If we launched with a completely free tier, heavy users could easily spike our API and infrastructure costs overnight. Instead of a free tier, we decided to use a 14-day trial where sensitive details (like direct journalist emails) are blurred on the frontend. This lets users test the workflow and accuracy of the product without putting our bootstrapped infrastructure at risk.


2. PR is sporadic. Subscriptions can cause high friction.

We asked ourselves: How often does an early-stage founder actually pitch the press?

For most startups, PR is a project-based event. You do it when you launch, when you raise a round, or when you release a major feature—typically once every few months.

If we only offered a monthly subscription to a founder who just needs to pitch 20 tech writers for their upcoming Product Hunt launch:

  • High barrier to entry: They might hesitate to sign up because they don’t want another recurring subscription to manage.

  • High churn rate: They would likely cancel the subscription immediately after their launch, leading to high churn.

Subscriptions are perfect for PR agencies, but for most indie developers, PR is a one-off campaign.


3. The Hybrid Approach: Giving founders options

To solve this, we integrated a hybrid model using Stripe. On our pricing page, users can choose:

  • Monthly Subscription: For agencies or serial builders running multiple campaigns.

  • Pay-As-You-Go (One-time payment): Where a founder pays a flat fee to run a single PR campaign and find targeted contacts. Zero commitment, no monthly billing, and no churn guilt.

We hope this makes it much easier for early-stage projects to get their first press mentions without committing to a tool they only need once a quarter.


We'd love to get the community's perspective:

  1. Have you used a Pay-As-You-Go model for a tool that solves a sporadic problem? How did it affect your initial conversion rate?

  2. Does a restricted trial (where you see the verified journalists but their emails are blurred until payment) feel like a fair way to evaluate the product?

Feel free to check out how the pricing page and the tool look at Pytch. We’d love to hear your thoughts!

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Pytch
  1. 2

    The line that matters in this post is that billing should follow the customer's usage rhythm, not the founder's wish for MRR. I went further in the same direction: my product is courses (kambolab, Claude Code for people who don't code), and it's one-time payment with lifetime access, no subscription option at all. Nobody takes a course monthly, so a subscription would just be a bet that customers forget to cancel, and that's a bad foundation for a trust business. IndieHackers culture treats MRR as the only respectable number, and it took me a while to accept that for some products recurring revenue is simply the wrong shape.

    Alex's point about second-purchase rate translates to my world too. For a course business the metric is whether someone who finished course one buys course two. That's the honest recurring revenue: they come back because it worked, not because the card was still on file.

    1. 1

      Thanks for your thoughts!

  2. 2

    Haven't run PAYG on a bursty tool myself, but from looking at how a bunch of usage-priced tools convert: PAYG usually lifts first conversion, since there's nothing to commit to, and the cost shows up later as weak repeat purchase. So I'd watch your second-purchase rate way more than your first. Your bursty use case actually helps here, the people who get a good list come back for the next launch if you make re-finding easy.

    On the blurred-emails trial, yeah, that feels fair and it's probably your strongest lever. Showing the verified names proves the hard part (the matching) works, and the blur puts the paywall right at the moment of intent. One risk: if the free view lists the names, a determined founder just googles the three they care about. I'd cap how many matches show for free too, so the real value stays behind the wall.

    1. 1

      Great thanks for your opinion about PAYG and the blurred emails value!

  3. 2

    Moving to a usage-based model is a smart move for PR tools because the value is inherently episodic. Founders don't pitch every day, so forcing a monthly subscription creates a friction point where they churn out the moment they're done with a specific campaign. Capturing that 'pay-as-you-go' revenue aligns your incentives with their actual workflow, ensuring you get paid when they actually find value.

    1. 1

      Great thanks!