3 Benefits of Subscription-based Software

Consumer habits have changed recently from the one time trip to the grocery getting everything that’s needed for the entire month to the buying of goods on a weekly or daily basis. This comes as no surprise as the latter seems to be simpler and more hassle-free. It means you don’t have to take home a truckload of groceries you may not even be consuming for the rest of your life.

Software-as-a-Service (SaaS) companies have seen this trend and started to cash in on it (for a good reason). In fact, reports say that these companies such as Dropbox and Salesforce have valuations on the rise because of this business model.

But as a consumer, what benefits can you get from a subscription-based software?

Benefits of Subscription-based software

Faster ROI

OPEX and CAPEX are two necessary elements in running your business. In traditional business models, you have to cough up a big amount of money during the first year for an app or software you need. Then pay a small percentage for future upgrades or additional features. Consequently, your capital expenditure is high, making your operating expenditure low.

With a subscription-based software, the initial payment is low. You then can spend your fortune on other services and elements your business needs such as advertising and marketing. As a result, you get a faster return on investment.

The overall investment in proprietary license model and subscription-based model may not differ significantly, but the smaller initial investment makes all the difference.


Your needs change regularly. What you need now may no longer be necessary next month. In traditional business models, you have to wait for at least a year before you can modify or cancel your license. Sometimes, canceling it means a wasted investment.

With a subscription-based software, you may upgrade and downgrade anytime you want depending on your needs. It may not take effect immediately, but the waiting time is relatively shorter at least.


Subscription-based software should be automatically renewed unless you choose to unsubscribe to it. This means you don’t have to take another trip to the store—online or offline—to purchase the service you need.

Oojeema is subscription-based software designed to make accounting simpler.

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