Maybe you can provide clarity on ACH risk. Seems like businesses have most of the risk there.. and not the billing system (keeping the gateway out of this).
Secondly, transaction/user based models are also aligned with customer incentives. With growth, customers will execute more transactions on the system.
Frankly, Smart recovery is an area where I can see you can ask for % share. Other features like payment methods etc sound transactional again.
Finally, Stripe has a payment gateway business already. This will ensure growth on that side of the business. Optically this seems like a revenue grab. You have the opportunity to disrupt the ecosystem.
Thanks for responding to my comment. Appreciate the interaction.
Billing (recurring or one time) is a transactional activity and should be monetized as such. There should be a per invoice or per customer type of rate. This whole % of revenue seems crazy to me. There is no inherent risk involved like payment processing. You can get paid no matter what in a tx model...
Based on what I see in the market with other billing/subscription providers, they all do the same thing (rev share). Since these businesses are not the payment gateway they try to do a revenue grab with the % share.
I hoped Stripe would be able to disrupt this by already being positioned as a payment gateway and offer this on top in a transactional model....
Hope they rethink this strategy. And no first $1MM isnt going to cut it. Any serious business will see this as a growth challenge. Backend billing flows are challenging to build and once you are committed to this you are locked in for quite sometime from the roadmap perspective.
There should be some sort of penalty for canceling/rejecting even if you had availability. Just like canceling an Uber. These cancellations ought to add up over time and reflect in the rating...
Additionally potential renters should be able to rate this initial experience as well, which should factor in the rating.
Dont think that will fix this problem but might curtail some of this behavior. I believe that technology and applied correctly has potential of changing behaviors (we have seen that in spades with AirBnB already).
Awesome!
I would love to see one of the providers take that up and offer that in the migration process.
One of the best things Parse offered was ability to purely focus on application code and not worry about anything else. Tech pundits may balk at this approach but for a startup looking for product/market fit, this works. Until we have that nothing else matters.
This is a great article. So true at all the levels.
Look at any mid to large scale company and their internal ticketing systems, HR systems, travel booking systems, time tracking systems.
The last company I worked for, did not upgrade the employee laptop OS from Windows XP for over 10 years as their legacy ticketing system wasnt supported on the newer versions. Obviously this was a cost issue of the new ticketing platform but also the unknown cost of retraining the whole company. Additionally people and organizations get comfortable with the "evil you know".
Frankly as a new entrepreneur this is also incredibly hard to test in the market. Most early customer development will give you signals that they want it, but won't act when it comes time to switch.
This is why you see SaaS services succeeding by cracking few employees or small teams at a time. Think of Yammer, Slack etc.
They don't need the whole company or department to change. Just few employees or the team can use it and slowly infect the rest of the company. That would be the only way to overcome this problem (although not all products can do this).
Secondly, transaction/user based models are also aligned with customer incentives. With growth, customers will execute more transactions on the system.
Frankly, Smart recovery is an area where I can see you can ask for % share. Other features like payment methods etc sound transactional again.
Finally, Stripe has a payment gateway business already. This will ensure growth on that side of the business. Optically this seems like a revenue grab. You have the opportunity to disrupt the ecosystem.
Thanks for responding to my comment. Appreciate the interaction.