Should I change my one time license to SaaS?
I am the founder of an open source delivery platform. The frontend is on GitHub, the backend is proprietary, and I sell one-time source code licenses rather than a subscription. I have sold around 500 of those over the years and get about 40 new signups a week.
The one-time model has upsides. No churn, no monthly bill to justify, and people own what they buy. But revenue is lumpy with no recurring base, so every month starts close to zero. The one recurring piece I have is backend customisation, where clients come back for custom work after buying the license.
My main concern with switching to SaaS is the math. I could charge maybe $100 to $200 a month. But hosting runs around $100 of that, and then marketing and everything else eats into the rest. Even if a client stays a full year, that is $1,200 before costs, and once you strip those out it does not leave much. With a one-time license I get a real chunk up front. I am not convinced the recurring version actually nets more.
For anyone who has run both or switched between them: did going recurring actually grow the business, or just trade one problem for another?