What do you think about 1-day subscriptions for SaaS product?
Hello everyone!
I have been working on developing a SaaS tool that allows users to analyze their legal documents, identify important clauses, and flag suspicious points. While I initially planned for the main audience of my app to be legal professionals, I also see potential value for regular individuals without a legal background.
As I consider the monetization strategy for this tool, I'm facing a dilemma. The subscription-based model seems suitable for legal professionals, but I'm unsure if it is the best approach for regular users. To address this, I've been contemplating an alternative idea. I'm considering offering a 1-day subscription option to cater to occasional users who may not require a full subscription. However, I haven't come across this approach in other SaaS products, making me uncertain about its effectiveness.
I would greatly appreciate the insights and thoughts of this community. What do you think about the idea of providing a 1-day subscription option for users? Are there any other monetization options you could suggest that would cater to both legal professionals and regular users without significant changes to the code base?
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First do it for legal professionals... Capture say 50 customers and then think of regular users. By then you thoughts would have more matured.
Thank you for your reply! I really appreciate your input and suggestion to target legal professionals first and then consider regular users. However, I must confess that my initial goal was to create a tool specifically for regular people without any legal background from the start. I feel a bit guilty for not prioritizing this side of the audience, but I believe I can still accommodate their needs. Adding a 1-day subscription option shouldn't be too difficult. So, before finalizing my decision, I just wanted to validate this idea with other makers who might have been in my place before.
I am a co-founder and entrepreneur. Here is how I think.
I always take the opinion of the expert even before signing the document.
So tool like yours is good to have. But legal expert consultation is must have.
From legal experts point of view your tool improves their performance. So for them it's must have.
So, I would strongly suggest you to build your tool aligned for legal experts. They are the one who are mostly willing to open their wallets and pay you.
I completely agree! For now, I will choose the easiest option (even though it may not be the most convenient for the general public) and concentrate more on legal professionals. Thank you!
I would probably spend a few $000 a year on a day, week SaaS subscriptions if that was an option. There are lots of tools you need/want only for a very short time to perform a one-off task - and for that I would pay at least 40-60% less than a monthly price as I simply wouldn’t need it thereafter. However once I see the value I know next time round it’s worth considering a subscription. I would treat at as a funnel and also a way to gain revenue.
I am an owner of a SaaS website, logomakerr.ai (https://logomakerr.ai/) an AI-powered logo design maker that generates logos within minutes, specifically catering to startups and small businesses.
Its aim is to empower these businesses by enabling them to create their own logo designs and branding packages, fostering memorable impressions among prospects and consumers.
As a fellow SaaS product owner, here is my perspective on offering 1-day subscriptions for SaaS products:
Providing 1-day subscriptions for SaaS products offers advantages in specific situations, enabling potential customers to experience the product's benefits without a long-term commitment. It appeals to users seeking short-term solutions or evaluating the product before committing further.
1-day subscriptions generate immediate revenue and facilitate upselling, but pricing, customer support, and onboarding must be carefully considered to ensure a positive user experience within the limited subscription period.
I would consider focusing on one customer type first.
The difference between what legal professionals will pay and regular users will be massive and you may find that the way the two sets of customers will use your app and the features they want will be quite different as well.
Have you talked to lawyers and asked if this will help? The legal space has a lot of interesting professional tools in the space.
Agreed, those two categories of my target audience are really different, and that's why I prioritize legal persons first. However, I'm also considering options that require less development time but would still be beneficial for the other part of the audience.
In fact, I already have a mobile app with similar functionality, and a few users who said they are lawyers have contacted me to inquire about the availability of a web version as it would be helpful for them in their work.
Super interesting problem you're tackling! In my previous gig, we launched a SaaS product for healthcare lawyers. We faced similar dilemmas about pricing and trials.
We experimented with 1-month vs. 3-month discounts. Surprisingly, the 3-month discount had a way better conversion rate. Guess it's true what they say about patience paying off!
We didn't offer a free trial because our solution was a high-ticket item, about $1200/month, and we didn't want to compromise our reputation as a premium service provider in the market.
So, with your tool, how about a 7 or 14-day trial for the general public? They get enough time to play around, see the value, and also feel that slight pressure as the trial period ends.
For your legal professionals, stick with the subscription model. It's proven and it works. Consider tiered pricing - everyone loves options, right?
Remember, every customer segment is different. Measure, learn, and pivot as necessary!
Good luck, can't wait to see what you do with this
Thank you for your input. You are correct, the free trial period is important, and I have already implemented it, along with a free version of the site that has some limitations. However, the reason I am considering 1-day subscriptions or 1-day passes is that non-legal professionals deal with legal documents infrequently, so it may not be valuable for them to pay monthly or yearly. Of course, this is just speculation as I don't have any solid evidence. So I am going to measure, learn, and pivot as you suggested :)
I'd say you should try usage-based pricing for the number of actions taken: docs scanned, clauses identified, points flagged, etc. Those are your main value metrics.
Usage-based pricing lets customers start with less friction and low cost and then pay more if they continue using your product.
For instance:
Plan 1: $9 to scan 100 docs/mo (For individuals with no legal background)
Plan 2: $19 to scan 1000 docs/mo (For legal pros with semi-regular needs)
Plan 3: $29 to scan 3000 docs/mo (For legal pros with regular needs)
That's just off the top of my head. Of course you need to adjust it to the reality.
I understand your thinking behind the 1-day subscription and there's only one way to find out if it works - try it. Then try usage-based pricing and see which ones gives you better results.
Thanks for your input! I hadn't thought about the pay-as-you-go subscription, but it sounds like a good idea. It might take some time to figure out the pricing, but I think it's a valid option. I'll start with a 1-day pass and then consider adding the pay-as-you-go option later. Thanks again!
Right on! I'm actually working on a SaaS to help folks like you figure out the right pricing and monetization strategy by enabling easier iterations. You can find it here and join the waitlist if you're interested: https://pricer.webflow.io
I've got SaaS experience in legal tech as a PM and my partner is in law school. Would be happy to chat if interested!
Quick update: I have implemented the "1-day pass," and now all that's left is to monitor the outcome of this approach.
btw, you can check out my site at https://legal-advisor.io.
You should talk to @thefedoration who has the concept of a pass in gummysearch.com. The other option as mentioned would be metered.
1-day subscriptions for SaaS products are becoming increasingly popular as they allow users to try out the product before committing to a longer-term subscription. This is especially useful for products that are new to the market or that have a lot of competition. It also allows users to test out the product before making a larger investment.
However, it’s important to note that 1-day subscriptions may not be suitable for all SaaS products. Some products may require more time to fully evaluate, and a 1-day subscription may not provide enough time for users to get a good sense of the product’s capabilities.
In general, 1-day subscriptions can be a good way for SaaS companies to attract new customers and provide them with an opportunity to test out their product before committing to a longer-term subscription. However, it’s important for companies to carefully consider whether this type of subscription model is appropriate for their product and target audience.
I hope this helps!
Thank you for this chatgpt article.