SaaS'd To Death - Subscription Model Fatigue
Being SaaS’d to Death is not something Gen-z is responsible for…this time. But it is happening to us all in some way…
If your entrepreneur journey has been anything like mine, you're entering a period Subscription Model Fatigue too, or it’s being officially called “Saas Sprawl”. I refer to it (non-affectionately) as "SaaS'd To Death" Because piece-by-piece, we're all having our pockets drained by SaaS that we pay for monthly. Everything wants you to subscribe, and forget, or subscribe and upgrade for more features. And to be fair, at the start of things, when Adobe forced an entire industry to conform to their model, it was a wonderful business decision.
A service or software that previously people could buy just once and own forever and ever...we can now charge a monthly fee and over the lifetime for each customer, make triple, quadruple, and X-drouple amounts on that single customer forever and ever amen.
No wonder Adobe's annual revenue has literally doubled since they began forcing everyone to pay for their services monthly or yearly.
Now, we all understand this was partly to combat pirating of their software, cracked versions being offered up with cracked keys where not a single cent was collected on all those black market versions. And partly, it was just "Good Business" for the company. But that change has swept across the technology sector because consumers just...accepted it. With some groaning and complaining on Reddit of course, but eventually everyone just caved.
And so a precedent was set...people will pay for software they once were able to own free and clear....and they'll pay for it monthly. If that is all you offer.
Now, back to the present...
A mere 12-ish years later, we're all having our bank accounts auto-debited multiple times a week or day for a discounted rate. They've used the cognitive biases we're most susceptible to, to get us to choose the option they want us to...and we're on the hook. Forced to manage a huge handful of services each month, on different days, just to control the services we're using.
Should you not need it for a month or a year, of course you can turn it off... There are laws now around Subscription services that require it to be easy enough to do without contacting a company.
But where is your equity when you turn these services "Off"? What you pay for is usage, not ownership like before. And it's just...sad.
It's certainly lucrative, but ultimately, for consumers, it's another endless cycle of purchasing that they can only combat with active management, which most consumers are actively trying to avoid.
Of course, this is a blog about having or owning a small business and it does present unique challenges to someone trying to start up and online business with no capital, or just as a hobby.
While I navigate the turbulent waters of Subscription Model Fatigue, I've learned a few things I'm eager to share on managing this new reality.
How can you, as a first-time or new online business owner, efficiently deal with this fatigue?
Audit Regularly: The first step in combating subscription fatigue is to conduct a regular audit of your subscriptions. Identify every service you're subscribed to and evaluate its utility and ROI for your business. If a service isn't delivering value proportionate to its cost or isn't essential to your operations, it's time to cut it loose.
Embrace Bundling: Some platforms offer bundled services that can save you a significant amount over subscribing to each service individually. Look for opportunities to bundle services under one subscription to reduce overall costs.
Seek Alternatives: For every high-priced SaaS product, there's often a lesser-known, more cost-effective alternative that can serve your needs adequately. Don't shy away from exploring these options. Sometimes, open-source or one-time purchase software can provide substantial savings over time.
Negotiate Terms: If a subscription is essential, don't hesitate to negotiate with the provider. Many SaaS companies are willing to offer discounts for longer commitment periods or adjust the pricing based on your usage levels.
Or better yet? Let apps like Rocket Money negotiate them for you. There are others of course, but the point is: Find a comfortable way to manage and negotiate your terms for each service. And use that service to the fullest, every single month, or cut it off.
Leverage Free Trials Wisely: Make the most of free trials to thoroughly test a service before committing. This period is crucial for assessing whether a tool is indispensable or if you can manage without it. Make sure you understand the service and tool as much as possible before beginning your trial, so that you can use it effectively.
Some trails are only a day or two long now! Imagine, wasting that time stumbling through a confusing interface or processes you don't understand. Then, by the time your trial is over and you need to commit to a subscription, you have no real idea if the service can help you or not.
Take advantage of a service's Knowledge Base if they have one or Help/FAQ documentation before beginning your trial.
Focus on Core Needs: Concentrate on subscriptions that directly support your core business activities. It's easy to get lured into subscribing to services that promise growth or efficiency but focus on tools that have a direct impact on your revenue and productivity.
Plan for Scalability: Choose services that offer scalability. As your business grows, you'll need tools that can grow with you without exponentially increasing costs. This foresight can save you from having to switch services frequently, which can be both costly and time-consuming.
Community Insights: Engage with online communities of eCommerce business owners. These communities can be goldmines of information on managing subscriptions efficiently, offering insights into which services are truly worth their salt.
Reddit's "r/ecommerce" is a wonderful resource for many things, and if in doubt, most software companies worth anything have their own subreddit you can check out.
The shift from ownership to subscription has indeed placed a recurring financial burden on young, small businesses, but with strategic management, this model can be navigated.
Remember: the goal is to ensure that every dollar spent on subscriptions contributes positively to your business's growth and sustainability. And isn't smashing any fragile financial positions.
By actively managing your subscriptions and making informed decisions, you can resurrect yourself from being "SaaS'd To Death" and keep your business financially healthy and growing.