How to Use One-Time Payments to Increase SaaS Sales
To incorporate a one-time payment option in your SaaS company, you have to make sure that it is compatible with the types of products and customers that the regular subscriptions do not cover. This is necessary because depending only on monthly or annual payments might miss customers who would like to pay just once.
This guide outlines the process of creating, setting up, and adjusting a one-time payment model that can enhance income and customer reach.
Figure Out Which Product Features Work for a One-Time Fee
The decision about whether to use a one-time fee or a subscription is dependent on how the customer values the feature. In the software world, a one-time payment refers to a single payment for a product that is fully completed at once and does not require continuous hosting or periodic updates. This enables businesses to access alternate sources of income outside the sale of services or products, which may be particularly applicable for digital goods or single-service offerings.
Focusing on products requiring less long-term maintenance may correlate with sustained profit levels from individual sales.
In order to understand if a function is appropriate for a single payment, consider asking these questions:
- Does the feature require hosting, cloud computing, or API calls? If so, the feature should be split into a subscription; if not, it can be a one-time purchase with одноразові платежі.
- Does this value get delivered all of a sudden, or does it get eroded slowly? In the first case, it is useful for a one-time fee (for example, a single installation cost); otherwise, it should be for a subscription (for example, continuous use of the service).
- Does this feature require any special products, updates, or infrastructure? If the answer is yes, it is viable for a one-time license; if the answer is in the negative, then it should be saved for a subscription.
Focus on Complete Value: Find features that offer full value and don’t need continuous server power or a lot of development work.
- A tool that provides 50 high-quality website templates upon purchase. The customer downloads them, and the transaction is complete.
- A single one-time payment of $\$199$ for personalized, live onboarding training, which is separate from the monthly app fee.
Targeted Users: Consider creating a one time license for people who use the software infrequently or who want to avoid the expense of a subscription but do not want to miss out on the benefits of the software. This kind of model addresses the problem of too many subscriptions (subscription fatigue).
Products with high initial development costs but low per-user costs (e.g., specialized PDF editors or development environments) may be offered with a one-time fee, as upfront investment may contribute to cost reduction over time.
FREE Checklist for Implementing One-Time Payments in SaaS
Get the four phases you need to execute one-time payment models flawlessly and boost your SaaS revenue flow.
-
Criteria for Choosing the Right Features
-
Guidelines for Setting Hybrid Price Points
-
Unified Billing System Requirements
-
Policy Checklist for Support and Updates
Set Up a Mix of Pricing Options
The choice to provide only a subscription or a one-time purchase has some disadvantages. In fact, the subscription limits the money you get upfront, and a pure one-time fee restrains the profits and income in general.
The solution is to implement hybrid pricing, a plan that includes elements of both markets, and thus attracts customers with different amounts of money available and levels of commitment. This strategy reduces the effect of depending on one source of income and increases the SaaS Життєва цінність клієнта, meaning the total amount earned from each customer over time.
One option is to offer core functionality as a subscription and extra features as a one-time purchase. Clients tend to select options that align with their perceived needs.
Lifetime Deals: involve a one-time payment for a product license valid for the project’s duration, alongside standard subscription options. This can result in a significant amount of initial capital that may be used to offset investment and development expenses.
Subscriptions generate regular revenue (ARR), but a large upfront one-time fee gives quicker cash flow. When money feels uncertain, some customers would rather avoid the hardship of paying a subscription in favor of a one-time upfront payment.
|
Product Model |
Price Structure |
Основна мета |
|
Core App |
Subscription (Monthly/Annual) |
Steady income and regular updates. |
|
Design Templates |
One-Time Fee $(\$49)$ |
Sell more to existing customers upsell SaaS product. |
|
Lifetime Access |
One-Time Payment $(\$499)$ |
Quick, large cash injection and attracts customers who want ownership. |
Add-Ons and Upgrades: Offer a one-time payment for an extra feature that a customer can purchase in addition to their subscription.
For example, charging a single fee for a new customer to access all old data records.
FREE Checklist for Implementing One-Time Payments in SaaS
Get the four phases you need to execute one-time payment models flawlessly and boost your SaaS revenue flow.
-
Criteria for Choosing the Right Features
-
Guidelines for Setting Hybrid Price Points
-
Unified Billing System Requirements
-
Policy Checklist for Support and Updates
Integrate a Specialized Billing Solution
In order to carry out both recurring payments and a single payment, your SaaS company needs a strong, flexible billing system, which is capable of performing both types of operations seamlessly. The presence of this kind of system helps data organization and relates to clarity in the creation of invoices, renewals, and legal issues pertinent to these transaction types. This way, you will have better financial records and get the most out of what each customer brings in.
It saves everybody’s time and makes it possible to focus on product improvement, rather than on finding solutions to problems with the payment process.
- Select a Unified Platform: Prefer a solution that manages both subscription billing (including partial fees, failed payment attempts, and cancellations) and single invoices without trouble. This will reduce the effort required and makes integration simple.
- Global Compliance and Tax Automation: For SaaS selling worldwide, the payment processor must handle different tax rules (like VAT) and accept payments in different currencies. A reliable payment, subscription, and tax solution like PayPro Global provides this functionality, supporting more than 140 currencies and 70 payment methods for processing глобальні платежі, and also handling глобальний податок з продажів SaaS as a Merchant of Record.
- Make Checkout Easy: Since in the case of one-time payments, there is just one opportunity to complete the sale, it is important to keep the checkout brief. A guest checkout that asks for very little information leads users to proceed easily and quickly with the purchase, reducing cart abandonment rates.
PayPro Global allows you to create customizable checkout forms that you can optimize for mobile devices and set up for one click buying for returning customers. This reduces the time and enhances the probability of the one-time payment being processed.
FREE Checklist for Implementing One-Time Payments in SaaS
Get the four phases you need to execute one-time payment models flawlessly and boost your SaaS revenue flow.
-
Criteria for Choosing the Right Features
-
Guidelines for Setting Hybrid Price Points
-
Unified Billing System Requirements
-
Policy Checklist for Support and Updates
Plan for Maintenance and Updates
A significant consideration regarding permanent one-time licenses is the provision of ongoing support та new features without a recurring revenue stream from the user. To avoid losing money on support, the SaaS business should differentiate the license for the software from the support and update services. This ensures that the costs of providing support are covered, which is usually through an optional, periodic payment.
It is advisable to explain the terms in the very beginning to avoid customer confusion and keep the development on track.
Establish Paid Service Tiers: Consider separating software access from maintenance and support offerings. Be specific about what the first payment includes. In addition to the standard version, offer a recurring subscription plan for:
- Ongoing Support: Issue resolution assistance is provided during the first period (e.g. 90 days).
- Major Updates/Upgrades: Access to future versions or new feature releases (e.g., V2.0) that have been released after the initial purchase.
Define “Ownership”: Be clear about what the one-time payment covers. For example, a single payment grants access to the software for version 1.0 only, but in order to maintain that access in the future, it is requested to subscribe to a recurring payment or make another one-time payment to upgrade to version 2.0. This type of plan can provide the SaaS business with financial resources for ongoing development.
It is necessary to be honest. Clearly state that the one-time license applies to the version purchased and that future major feature releases may require a paid upgrade. Maintaining transparency regarding fees, including those for updated versions, preserves trust.
It is recommended to solve customer and money worries at the early stage of the development of a business or project to avoid people leaving and ensure the functioning of the business model.
Considerations regarding the one-time payment model include its expense and its potential influence on the cash flow statement.
Надання various payment options and clarifying the довгострокову цінність can potentially affect purchase accessibility in your SaaS business.
To illustrate the model’s financial status, a system can be established to monitor the conversion rate of one-time purchasers to paid subscribers.
|
Проблема |
Рішення |
|
The higher one-time fee can be a deterrent for customers, who may find the smaller monthly subscription more appealing. |
Consider framing the one-time payment in relation to its potential Пожиттєва цінність клієнта (LTV). Showcase how the single fee turns into a competitive expense in the course of a few years through the usage of the line chart. In addition, include an alternative way of making the payment for the single fee in a way that it reduces the amount of the initial investment. |
|
Predicting income can be difficult without a consistent stream of subscription payments. |
Take this one-time fee to put towards quick projects or the cost of залученням нових клієнтів, and use the recurring subscription models for items that provide continuous value. Track how many one-time purchasers end up becoming paid subscribers. |
Висновок
Offering a one-time payment option may appeal to some SaaS customers seeking predictable costs and a single transaction. This model, when used with separate products or as a premium one-time license, may relate to changes in income, alongside the sustained stability of subscription income.
To achieve this successfully, you need to be clear about what a one-time payment implies and includes, think through the strategy for setting prices, and have a flexible payment system.
Поширені запитання
-
A one-time payment is a single charge for a product or service that grants access without involving future billing. A subscription involves recurring payments and typically provides continued access, version updates, and support.
-
This kind of license is suitable for products that provide fixed, instant value and do not require continuous cloud hosting or frequent maintenance, such as template libraries, setup/onboarding services, or perpetual licenses for a static version.
-
A hybrid model involves using both recurring subscriptions for the core service and one-time payments for add-ons, premium features, or lifetime offers. This approach relates to cash flow and potentially influences income stability.
-
The SaaS business should distinguish between the license for the software and the maintenance and support services: it may offer a separate, recurring subscription for support and upgrades to major versions at a later time.
-
Subscription fatigue is the feeling of being too tired of paying for too many recurring monthly subscriptions, and one-time purchases may present a choice for customers seeking a straightforward option without a long-term commitment.
-
A SaaS company requires a unified billing system that includes recurring invoicing and also the ability to handle one-time transactions, in addition to meeting the requirements for global compliance, multiple currencies, and complicated tax rules and regulations (like a Merchant of Record).
Готові розпочати?
Ми були там, де ви зараз. Дозвольте нам поділитися нашим 19-річним досвідом і втілити ваші глобальні мрії в реальність.