Why is Kizby being sold by subscription?

Kizby is being sold in a rather different way from most other desktop-based software products: rather than charging a large up-front fee, we’re licensing its use by the month, also called subscription-based service or software as a service (or SaaS). This means that you, our customer, pay a small amount for each month of use rather than pay a large upfront cost with inevitable upgrade fees. We’ve spent considerable time weighing possible sales models, and a subscription model seemed to provide a win-win situation for both our customers and ourselves. Let me explain why.

Every business has the same fundamental problem: we need money to cover salaries and pay the bills. Most software businesses sell their software for a lump sum. Each sale provides some money that must cover the costs until the next sale. A lucky business will have continually increasing sales. But most businesses see their sales follow a curve where sales eventually start to fall off. Since their costs rarely decrease, they need to do something to stimulate demand, typically introducing a new product or an upgrade.

In this traditional model, every interaction with a customer after a sale is seen as an expense or a drain on resources. Time spent on support and bug fixes is time taken from new product development. The only incentive for a traditional software business to provide bugfixes and improvements is to maintain positive word-of-mouth so as to drive new sales.

A subscription model reverses this trap. A single payment of $3 or $5 doesn’t provide much profit for this business. But if we can persuade you to become a subscriber, then we obtain a recurring revenue stream that can be counted upon. We become heavily incentivized to put in changes and improvements to Kizby so that you’ll stay as a customer.

In some respects, the subscription model is no different from the more traditional model. Rather than charging you a large up-front cost, we’re gambling and amortizing the payment over time. But this simple change transforms you from being considered an expense or a drain to your proper place as a valued customer. And that makes us happy: we’d far rather focus our efforts on improving Kizby and making you happy than chasing leads to find new users.

See if Kizby is right for you. Try Kizby for free for 30 days: no credit card details required. If you like Kizby, then we’ll be happy to start a subscription for you. And if you don’t, please let us know why: we’re continuously improving Kizby and your opinion matters.

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