Subscriptions: The Good, The Bad And The Overused

David Heinemeier Hansson’s Case for One-Time Purchases

Subscription models have taken over the digital economy—but are they always the best choice? In this episode of Subscription League, we sit down with David Heinemeier Hansson (DHH) to challenge the status quo of recurring revenue. As a pioneer in SaaS and the creator of Ruby on Rails, DHH has seen the industry evolve firsthand.

Now, with his latest venture, ONCE, he’s advocating for an alternative approach—one-time software purchases that put ownership back in the hands of businesses. If you’ve ever questioned the sustainability of the subscription boom, this episode is for you.

More about David

David Heinemeier Hansson (DHH) is a renowned entrepreneur, software engineer, and author best known as the co-founder of Basecamp and the creator of Ruby on Rails. With a reputation for challenging industry norms, DHH has consistently pushed for innovative business models that prioritize sustainability over hype. His latest venture, ONCE, explores an alternative approach to SaaS—offering one-time software purchases instead of perpetual subscriptions.

This episode sneak pick 

• The Evolution of Subscription – How subscription-based software grew from an emerging concept into a dominant business model, and where it might be heading next.

• Subscription Overload – Why more consumers and businesses are hitting their limit with recurring payments and what this means for companies relying on this model.

• When Subscriptions Make Sense – A look at industries and use cases where subscriptions provide clear value and create a win-win situation for businesses and users.

• ONCE: A Different Approach – DHH’s vision for software that users can purchase outright, how it compares to traditional SaaS, and what businesses can learn from this model.

Key Topics at a Glance

• The Rise of Subscription Fatigue – How consumers and businesses alike are growing tired of endless recurring payments.

• Drawing the Line Between Subscription and One-Time Purchases – DHH explains when a subscription model is justified and when it becomes an unnecessary burden on users.

• The Incentive Problem in Subscription-Based Businesses – Why some industries (like dating apps) are actually disincentivized to help users succeed.

• The Economics of ONCE – An alternative model where companies sell software as a one-time purchase, empowering businesses to own their tools instead of renting them.

Wrapping Up

David Heinemeier Hansson brings a refreshing perspective to the ongoing conversation about subscriptions. While he acknowledges the undeniable success of SaaS and recurring revenue models, he also warns against their overuse and potential drawbacks. His approach with ONCE challenges the norm, offering businesses an alternative that aligns better with long-term value creation.

Whether you’re a SaaS founder, a growth marketer, or simply someone keeping an eye on subscription trends, this episode provides deep insights into the evolving landscape of digital product monetization. If you’re interested in learning more about DHH’s work, visit dhh.dk.

Stay tuned for more thought-provoking discussions on Subscription League!

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Previous episodes

#1: Phiture - All about Retention with Andy Carvell

#2: Babbel Live - How to create a success in a crowded market with Belen Caeiro

#3: Mojo - Strategies you should focus on for a successful subscription business with Jean Patry

#4: The Guardian - Growing the user base The Guardian way - with Jesse Wilkins

#5: Blinkist - Using transparency to increase your conversion rate with Eveline Moczko

#6: Rootd - How to bootstrap #1 health and fitness app with Ania Wysocka

#7: Luni - Subscription Marketing 101: tips to drive acquisition and retention with Adrien Miniatti 

#8: Uptime - How to build a successful user-first app strategy with Léa Samrani 

#9: GP Bullhound - What venture investors look for in subscription apps with Eric Crowley

#10: Phiture - How to optimize mobile app subscription with Andy Carvell

#11: Jodel - Shifting from ads to In-App Subscription-led revenue generation with Tim Schmitz

#12: BlueThrone - Product market fit, Subscription, and Other Secrets of Success by Idan Waller

#13: Aperture - Tips for Creating the Right Mindset for Business Growth by Hannah Parvaz

#14: MobileGroove - The Subscription Model - the state, benefits, and success tips by Peggy Anne Salz

#15: Appic - All about subscription app onboarding with Tobias Boerner

#16: Together Labs - Leveraging user research to maximize subscription app monetization with Jenny Pollock

#17: BlueThrone - Product market fit, Subscription, and Other Secrets of Success by Idan Waller

#18: Pollen VC - A guide to financing your user acquisition with Martin Macmillan 

#19: CoinState - Finding the sweet spot with the right subscription app monetization and pricing strategy with Vahe Baghdasaryan 

#20: PhotoRoom - How to grow a subscription app business and its user base globally by Olivier Lemarié

#21: App Masters - How to monetize your app: expert tips from Steve P. Young (App Masters)

#22: How Mimo builds an experimentation culture with Ekaterina Gamsriegler

#23: Applica - Framework for subscription optimization: tips from behavioral science expert Sviat Hnizdovskyi

#24: Papumba - Making a safe digital playground for kids with Gonzalo Rodriguez

#25: Transitioning to Digital: Insights from Michael Ribero of The Washington Post

#26: Sweatcoin - Redefining motivation and user retention in the fitness app landscape with Rowan Pereira