Why is software moving to subscription?

Subscription pricing models became the norm as more software companies sought to monetize their value. Subscription models, for example, provide advantages that allow businesses to scale faster and grow at an exponential rate.

There has been a quiet but significant shift in the software industry, and it is related to how we buy and pay for software. Software companies are shifting away from selling perpetual licenses, in which customers must pay for a license every time they want to upgrade, and toward subscription-based models (subscription economy). When compared to traditional fixed rates of operating cost or product costs, this allows for higher revenue margins.

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This is especially true for businesses that provide software as a service (SaaS). The shift is taking place for two reasons: first, customers now expect software companies to be more agile when it comes to offering upgrades; and second, it’s now easier than ever to offer monthly subscriptions rather than one-time payments.

The new licensing model is known as “subscription pricing,” and the following are some of its advantages. Customer Growth: You’ll be able to scale your business more quickly, enticing customers to upgrade without breaking the bank.

Because your customers can buy your product on their own terms, you can gain more paying customers and in turn higher long term recurring revenue. Also, a subscription pricing model can also benefit your customers. The ability to pay only for what they use. And you can manage all of this directly inside the CRM with integrated subscription services. 

Customers with low-value needs, such as those who only require a small amount of software, will now be able to use the product without paying a high price. Customers with high-value needs, on the other hand, will have an incentive to upgrade and continue using your services. This means you’ll have more revenue as a result of higher retention rates, as well as additional revenue from upgrades.

Even businesses that sell enterprise saas products are adopting this pricing model. Slack, for example, uses a freemium business model that allows users to use software for free for as long as they want. Users will be billed automatically if they use more than a certain number of paid features in the app.

Atlassian, for example, has been offering its JIRA software as a subscription since 2011. JIRA was initially sold as a traditional piece of software by the company. However, they realized that switching to a recurring revenue model would allow them to grow more quickly by releasing new upgrades every three months. Atlassian’s winning strategy paid off when JIRA became the most popular project management tool across industries.

The shift from selling perpetual licenses to subscriptions offers has also enabled an increasing number of software companies to evolve how customers use their products over time. Instead of selling and delivering large upfront packages, software companies can now sell smaller “snack-sized” packages with lower entry points and lower upgrade costs (if at all).

To understand why software is moving to subscription, you must first understand the benefits it provides. Subscriptions business models are paving the way to the future by providing benefits to both the company and its customers.

High Velocity 

Get ahead of everyone else with predefined user roles and the most effective approach to modern sales.

Live Dashboards

Track and focus on key sales activities in real time to drive overall sales performance.

Best Practice

Rizer CRM lets you manage and sell effectively from day one instead of starting from scratch.


Discover how Rizer CRM is different! 

We focus on all aspects of your sales team so they can focus on closing more deals. With Rizer CRM we provide a better way of managing the full cycle from lead to customer, onboard, retention and follow-on sales. We help maximize the value of your relationships. Our software comes packed with features that make sense to you. Here are some of them: 

Never lose a deal

Stop losing deals. Recycle the rejected products instead. Reconnect with the lead once the time is right. Sell more.

Products are the focus

Rizer CRM has a product focused approach. Closing deals, onboarding and retaining customers are all built around your products.

More leads, less data entry

We handle both inbound and outbound leads so you have all relevant info in once place. With the help of our forms leads arrive from the website in the CRM without the need of tedious copy pasting.

Organization that works

With Rize CRM, we break up your pipeline into clearly defined actions. Each deal contains everything you need to succeed: all the people involved, every discussion, every task, important dates, etc. All in one place.

What to expect from our software solution

Lead Management

By managing both inbound and outbound lead flows and by providing the right qualification tools in each case, we allow sales teams to access the leads with the most probability of closing, regardless of their source.

Customer Management

Once a lead becomes a customer, Rizer CRM helps you streamline communication between after sales teams and the beneficiary for a smooth transition. Keeping with our product-focused approach, we track products both in onboarding and retention.

Product Management

Rizer lets you add your products and manage them within the system. Each of the products added can be matched with existing key custom variables for better management of lead and customer data.

Deal Management

We talked before about predefined roles and processes, and a product-focused approach to managing sales. All these come together in the way Rizer manages and organizes deals.

High Velocity Sales Model

High Velocity Sales is an inside sales model that will help increase your sales performance. It involves the use of specialized teams. Compared to others, the user management inside the Rizer CRM lets you set specific functions for each member of your team.


You can stop the hassle of exporting data and manipulating it outside of the CRM or always having the feeling of missing out. Because of the way we structure and predefine data, Rizer can provide analytics like no other solution.

Double your sales today

Simplify your daily routine and double your sales using our powerful yet still easy to use tools:
generate leads, qualify, sell, onboard, retain, upsell and track performance in one intuitive tool.

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