Print the invoices to PDF and email them. Since you they are online, you
need to have a contact email for them. If the invoice bounces, you have a
reason to protect their data from unauthorized use. At least until the
misunderstanding is cleared up.

Tracy

-----Original Message-----
From: MB Software Solutions, LLC
Sent: Tuesday, February 02, 2010 1:50 PM

Malcolm Greene wrote:
> Looking for feedback on how to come up with a subscription based 
> pricing option for a traditionally priced piece of software.

Exactly the approach I'm wanting to take, too.

> 
> Even though our product is not a hosted service (yet), we have several 
> pilot customers asking us about an option to pay for our software on a 
> subscription vs. up-front basis.

I think more and more folks are going to want to go this route.

> 
> For purposes of this discussion, given a software product priced at 
> $1495/seat plus 20% year support and maintenance (after the first 
> year), what would you consider a fair monthly fee for a pay-as-you-go 
> (no contract) monthly subscription and what is the justification 
> behind your pricing model?
> 
> My initial thoughts:
> 
> A monthly subscription fee that's between 6.5% to 10% of the retail 
> price. Using the above example, a monthly subscription price would be 
> between $99.95 and $149.95 with a break even period between 10-15 
> months.

Important to make the point about the break-even period.

> 
> Anyone have any better ideas or reference to a scientific way to 
> approach this question?

For me, I want the approach that is the LEAST hassle administratively. 
I don't want to send monthly invoices.  Call me lazy.

--
Mike Babcock, MCP
MB Software Solutions, LLC
President, Chief Software Architect
http://mbsoftwaresolutions.com
http://fabmate.com
http://twitter.com/mbabcock16


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