Because there is a lot of free software out there.
I think a better marketing plan is to charge a monthly subscription. I have no data on this, but I believe a lot more people would rather pay $5/mo indefinitely rather than $400 one time.
I'd question your assumption on SaaS vs one-off payment.
Remember he's selling to large orgs. They have set budgets (often use it or lose it next year), and getting approval for a $400 payment might be easier than recurring payments.
Comments
Because there is a lot of free software out there.
I think a better marketing plan is to charge a monthly subscription. I have no data on this, but I believe a lot more people would rather pay $5/mo indefinitely rather than $400 one time.
I'd question your assumption on SaaS vs one-off payment.
Remember he's selling to large orgs. They have set budgets (often use it or lose it next year), and getting approval for a $400 payment might be easier than recurring payments.